The html needs to live in a dashboard, one way or another. For a dashboard, you can write Simple XML or Advanced XML or you can use HTML. The tag defines a dashboard in Advanced XML.
However, I would write this simple XML for a dashboard instead:
<dashboard>
<row>
<html>
<h1>HTML Panel Example</h1>
<p>The HTML panel displays inline HTML.</p>
<img src="picture.jpg"/>
</html>
</row>
</dashboard>
Now you don't need hello.html at all.
For more info check out the Build Dashboards with Simple XML section of the manual - or start at the beginning of the manual. learn Splunk.
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