This may have been solved before but I add this note for posterity:
The simulator is able to find images whether they are loaded up to the watch or left on the device. Specifically, the command:
[self.myImage setImageNamed: @"fileName.png"
works fine in the simulator but on a device you get the error:
"Unable to find image named fileName.png"
They say you just need to load the image in the Images.xcassets or something - but I could not get that to work. (Actually, I got it to work for an image in the Glance but not for images in the InterfaceController - go figure!) I did get it to work by caching it as follows:
[[WKInterfaceDevice currentDevice] addCachedImage:[UIImage imageNamed:@"fileName.png"] name:@"myImageName"];
then
[self.myImage setImageNamed:@"myImageName"];