Is is possible to have two different image backgrounds? I've provided an example below of what I want to do. The only way I know is to have one background made to look like two. I think it can be done without this, if so how?

Break it up into three DIV's, each one with it's own background; or, alternatively, make "Background 1" the background of BODY, then make a centered DIV with its own background.

or you could jsut combine it in photoshop the way you did it in your example, instead of having to mess around with coding.