In my Joomla install there's already a template installed, and with this template came the folder "template" in media. I want to place my "menu background images" folder within this "template" folder upon installing my menu module. How do I go about doing this?
You can create install-uninstall-script file and on installation of the module move the images folder in to the desired location.
Another way using xml syntax, but this is restricted to media directory only. In case you want to move your module media to some directory other than Joomla-root/media then this solution will not work.
<media folder="media" destination="Template_directory"> <folder>css</folder> <folder>js</folder> </media>