Can you tell me where the settings are to change the default image, as well as the ability to disable the default image? I found some settings in includes/placehold.php, but it's not something easily editable for my needs.

Dear sir,
You need change it in code files, please go to folder: templates\sj_thedaily\html\com_k2\templates\and change it in files: category_item.php and item.php

Thanks.

Thanks. For anyone else looking to do this, search for this code in both files: