This low power view shows a liver lobule in a rabbit that's been injected with India ink. The carbon particles of which the ink is composed have been phagocytosed and the Kupffer cells stand out in stark contrast to the hepatocytes around them. The radiating arrangement of the plates of hepatocytes, and the sinusoids between them, are particularly well demonstrated in this slide. (The unusual clarity of the architecture in this preparation is probably due to its having been perfused with fixative; there are no erythrocytes in the sinusoids because they've been "washed out" by pumping fixative in via the hepatic artery and portal vein.)
Rabbit liver; India ink/Neutral Red stain, paraffin section, 200x and 400x
In this image you can see Kupffer cells in situ, sitting on "top" of the hepatocytes and actually projecting into the stream of blood oozing past. The principal role of the Kupffer cell is to remove from the blood any particulate contaminants that happen to be present, and also to destroy aged erythrocytes. Their position enables them to do this easily; they just sit there and scarf up things that come by. These cells actually show some brownish material (probably lipofuscin) inside them. An eosinophil is also visible. Since the sinusoids are blood vessels, you can potentially find any of the formed elements of circulating blood inside them.
The Kupffer cell is physically located in the sinusoid, but it's attached to the hepatocytes, with a small gap between it and the underlying hepatocyte. This is the Space of Disse (Josef Disse, 1852-1912, a German anatomist). The space of Disse was a subject of considerable controversy before about 1950 as many people regarded it as an artifact of preparation and believed that the Kupffer cells (or, alternatively, the endothelial cells if there wasn't a Kupffer cell around) weren't separated from the hepatocytes. The electron microscope settled that question: the space is real. Transmission electron micrographs even show short microvilli on the surface of the hepatocyte that project into the space of Disse.
Monkey liver; H&E stain, 1.5 µm plastic section, 1000x and 1000x