Upgrade to drupal 5.2

Create this imagenotes.info file will make drupal able to detect the module
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; $Id: Imagenotes.info,v 4.7.x-1.x-dev Exp $
name = Imagenotes
description = This module provides flickr - style note capabilities for image nodes. It requires and uses the Fotonotes technology, more about fotonotes on their site: http://fotonotes.net/
package = Image

version = "4.7.x-1.x-dev"
project = "imagenotes"
datestamp = "1182017423"

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In imagenotes.module:

Replace the function of imagenotes_nodeapi() as below (fix the fnServerPath path error):
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function imagenotes_nodeapi(&$node, $op, $teaser, $page) {
if ($op == 'view' && $node->type == 'image' && $page) {
drupal_add_css(drupal_get_path('module', 'imagenotes') . '/fnclient/fnclientlib/styles/fnclient.css');

$js = "\n";
$js.= "var fnServerPath = '". url('imagenotes/' . $node->nid) ."/';\n";
$js.= "var fnAnnotateAll = true;\n";
$js.= "\n";
drupal_add_js(drupal_get_path('module', 'imagenotes') . '/fnclient/fnclientlib/js/fnclient.js');
drupal_set_html_head($js);
}
}

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\imagenotes\fnclient\fnclientlib\js\fnclient.js

Comment the fnServerPath (line#14)
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//var fnServerPath = "../";

That's it!
It is a very nice module, hope it can help someone out there