For the first part
I guess the first question I have is with Purchasing upgrades. I understand that a member can buy an upgraded posting for adding pictures, but I am unsure as the proper way to set it up so that they get 1 free pic, then have to buy or use credits to be able to add more pics.
What you would do when creating a category in the classifieds set the max images as 1.
Any additional images would need to be purchased.
The other question I have is I have Auto delete when listing completed, and Auto delete when auction completed both checked but they seem to stay posted just say completed until I manually delete them. How do I get an item to delete after a sale?
Make sure autoaccept bit is enabled. Auctions/listings are only marked completed when the win bid/price is accepted by the seller.