Well, mine is not...
I tried with an example given in page 4 of this same thread:
http://www.gutenberg.org/files/19499/19499-h.zip
I unziped it to a folder called 19499-h and got a subfolder called "images"
I can open the page in the mother folder and see everything correctly, so the paths are correct.
Then I get the file into the libpr500 as an ebook. I make the program do the conversion to lrf and get no images in the resulting file.
I think I'd already tried another book before, with the same result.
As I haven't read any other complaint on the point, I assume it's me missing something.
Here's the code of the page for the first image that I don't get:
<h1>MUSIC NOTATION<br />
AND TERMINOLOGY</h1>
<h2><span class="smcap">By</span> KARL W. GEHRKENS, A.M.</h2>
<h3>
ASSOCIATE PROFESSOR OF SCHOOL MUSIC<br />
OBERLIN CONSERVATORY OF MUSIC<br />
</h3>
<p style="text-align: center">
<img src="images/logo.jpg" width="50" height="47" alt="logo" title="logo" />
</p>
I would really, really love being able to enjoy images in ebooks as I've been an rtf-only reader so far.