<script language="JavaScript">
function function1() {
    myX.innerHTML = window.event.x;
    myY.innerHTML = window.event.y; 
} 
function function2() {
var x=myX.innerHTML;
var y=myY.innerHTML;
document.getElementById('answer2').innerHTML = "<img src= xxx.gif img border=0 title=x  style=position:absolute;top:document.write(x)px;left:document.write(y)px; width:50px;height:50px; />";
}
</script>
<div id="myDiv" onmousemove="function1()" onclick="function2()"; style="border:solid; width:5500; height:2500;">
  <img src= "xxx.gif" img border=10 title="x" style="position:absolute;top:30px;left:27px;width:540px;height:540px;" />

when i use document.write(x) and document.write(y) inside of function2 it doesnt give me any values,
it does create the image but at the default location

You shouldn't try to document.write something into the document once all parsing has finished, in response to an event. To insert content in response to an event, you must either use innerHTML or document.createElement, then insert it into a node. See the sticky titled "Fundamentals of Client-Side JavaScript", and the section "DOM Node Manipulation" for more information about this.

<script language="JavaScript">
function function1() {
    myX.innerHTML = window.event.x;
    myY.innerHTML = window.event.y; 
} 
function function2() {
var x1=myX.innerHTML;
var y1=myY.innerHTML;
var x = document.createElement(x)
var x = document.createTextNode(x)
var y = document.createElement(y)
var y = document.createTextNode(y)
x.nodeValue = x1
y.nodeValue = y1
alert(x.data)
alert(y.data)

how do i place into the topx; leftx part of the image

i assume its with document.getElementById(x.nodeValue) but how do i place this inside the "<image ....
and still know what i mean when i do it

last night i woke up three times from a dream where i solved this, to bad my solution didnt exsist
i made it out of something else, seems alot more complecated then i would of assumed, needed extra files attached

window.event only works in IE and Opera. Here's a good tutorial that might help you: http://www.quirksmode.org/js/events_access.html