Your suggestion worked. Calibre building on an initial epub file generates a mobi file from which Mobipocket Reader generates the associated images.
For some reason Mobipocket Creator building on either a Word or epub file strips the images. It does copy the associated image file when building from a Word file, however Mobipocket Reader doesn't then link to the images therein. When I build from an initial epub file and subsequently manually copy the image file that the initial epub file linked to, Mobipocket Reader doesn't subsequently link to those images.
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