If you haven't implemented the external functions it will not work. You have to implement those in order to work. The good thing with moodle is that you can touch only this specific area and therefore you do not have to read the whole code but just this specific part. You can specify exactly how you wanted to work. You can get, store, delete any data. There are some implemented code see user->external.php. About storing an image I havent tried something similar but I guess it is done as any other function you just have to specify the type. There is a working project for iphone http://iphone.moodle.com.au/ here is all tou need to know about external functions http://docs.moodle.org/en/Development:Creating_a_web_service_and_a_web_service_function http://docs.moodle.org/en/Development:Web_services
therefore the answer to the question "Did you have to add some server side code for a client side application to work with Moodle? " is yes!!!
You can connect anonymously to the svn of moodle and download the source!!!
Remember you can create any function you want and get any data you want by specifying appropriately the external services
Web Service for Smartphones and/or WebOS
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