cannot load png files with webpack, unexpected character : <p>Im trying to reconfigure my webpack, and now i cannot load the css files. i keep my styles in src > styles > main.css</p>

<p>I am getting errors such as </p>

<pre><code>ERROR in ./src/images/NavIcon03.png
Module build failed: SyntaxError: /Users/myname/work/site/src/images/NavIcon03.png: Unexpected character '�' (1:0) 
</code></pre>

<p>Here is my webpack configuration</p>

<pre><code>var webpack = require('webpack')


module.exports = {
  entry: [
    './src/main.js'
  ],
  output: {
    path: __dirname,
    publicPath: '/',
    filename: 'bundle.js'
  },
  module: {
    loaders: [{
      exclude: /node_modules/,
      loader: 'babel'
    },
        {
          test: /\.css$/, // Only .css files
          loader: 'style!css' // Run both loaders
        }]
  },
  resolve: {
    extensions: ['', '.js', '.jsx']
  },
  devServer: {
    contentBase: './'
  }
};
</code></pre>

<p>Below is the package.json</p>

<pre><code>{
  "name": "website",
  "version": "0.0.1",
  "dependencies": {
    "ampersand-app": "^1.0.4",
    "ampersand-model": "^5.0.3",
    "ampersand-react-mixin": "^0.1.3",
    "ampersand-rest-collection": "^4.0.0",
    "ampersand-router": "^3.0.2",
    "asynquence": "^0.8.2",
    "autoprefixer": "^5.2.0",
    "autoprefixer-core": "^5.2.0",
    "autoprefixer-stylus": "^0.7.0",
    "axios": "^0.9.1",
    "babel": "^5.5.8",
    "babel-core": "^5.5.8",
    "babel-loader": "^5.1.4",
    "bootstrap": "^3.3.6",
    "bootstrap-webpack": "0.0.5",
    "css-loader": "^0.15.1",
    "d3": "^3.5.12",
    "file-loader": "^0.8.4",
    "font-awesome": "^4.5.0",
    "google-map-react": "^0.9.3",
    "history": "^1.17.0",
    "hjs-webpack": "^2.6.0",
    "json-loader": "^0.5.2",
    "local-links": "^1.4.0",
    "lodash": "^4.3.0",
    "lodash.assign": "^3.2.0",
    "lodash.has": "^3.2.1",
    "lodash.merge": "^3.3.1",
    "lodash.pick": "^3.1.0",
    "lodash.result": "^3.1.2",
    "milliseconds": "^1.0.3",
    "moment": "^2.11.1",
    "node-libs-browser": "^0.5.2",
    "object-assign": "^4.0.1",
    "octicons": "^2.2.0",
    "postcss-loader": "^0.5.0",
    "qs": "^3.1.0",
    "react": "^0.14.6",
    "react-avatar-editor": "^3.2.0",
    "react-bootstrap": "*",
    "react-bootstrap-table": "^1.3.3",
    "react-bootstrap-validation": "^0.1.11",
    "react-cropper": "^0.6.0",
    "react-d3-components": "^0.6.0",
    "react-dom": "^0.14.6",
    "react-dropzone": "^3.3.0",
    "react-dropzone-component": "^0.8.1",
    "react-facebook-login": "^2.0.3",
    "react-fileupload": "^1.1.3",
    "react-google-maps": "^4.7.1",
    "react-hot-loader": "^1.3.0",
    "react-input-slider": "^1.5.0",
    "react-redux": "^4.4.0",
    "react-router": "^2.0.0",
    "react-select": "^1.0.0-beta8",
    "react-star-rating-component": "^0.1.0",
    "redux": "^3.3.1",
    "redux-promise": "^0.5.1",
    "slugger": "^1.0.0",
    "standard": "^4.3.1",
    "style-loader": "^0.12.3",
    "stylus-loader": "^1.2.1",
    "surge": "^0.14.2",
    "url-loader": "^0.5.6",
    "webpack": "^1.9.11",
    "webpack-dev-server": "^1.9.0",
    "xhr": "^2.0.2",
    "yeticss": "^6.0.7"
  },
  "license": "",
  "private": true,
  "scripts": {
    "build": "webpack",
    "deploy": "surge -p public -d labelr.surge.sh",
    "start": "webpack-dev-server",
    "yolo": "git add --all &amp;&amp; git commit -am \"$(date)\" &amp;&amp; npm version minor &amp;&amp; git push origin master --tags &amp;&amp; npm run build &amp;&amp; npm run deploy"
  },
  "devDependencies": {
    "babel-preset-react": "^6.5.0",
    "css-loader": "^0.15.6",
    "redux-devtools": "^3.1.1",
    "style-loader": "^0.12.4"
  }
}
</code></pre>
