Sprite Sheet Puzzle

Ok so let me just start off and say I am new a this and I am still learning.

I have been working to create a simple puzzle game for myself to understand the workings of Corona. I have been reading and it seems like people say to use a sprite sheet and shuffle the sprite sheet to create puzzle pieces. I have been referencing the game logic code in Code Exchange (http://developer.anscamobile.com/code/puzzle-piece-game-logic).

My problem that I am having is wrapping my head around the sprite sheet part. I feel like this is a simple answer and I feel like I may be thinking into it to much.

For example, if I want a picture of my face as the puzzle, do I need to

  1. take the original picture of my face
  2. cute my picture up into x amount of squares
  3. load x amount of squares into a sprite sheet
  4. load that sprite sheet into my game.

Thanks!
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