I've got the same problem running emacs 22.1.1 on Ubuntu 8.04, Org 6.06b. Images remain links when I toggle. Any thoughts?

d.

On Sun, Aug 24, 2008 at 5:49 AM, Manish <mailtomanish.sharma@gmail.com> wrote:
 On Sun, Aug 24, 2008 at 3:02 PM, Chris Randle wrote:
 > James TD Smith wrote:
 >
 >> On 2008-08-22 17:52:46(-0400), Lindsay Todd wrote:
 >>> Is there a way to link to a file containing an image, and have the
 >>> image display inline in org-mode?
 >
 >> You can do this using iimage; add the following to your .emacs: <snip>
 >
 > Every time I've tried to follow the instructions for getting inline
 > images to work, I've had no luck. The iimage mode is shown, but links
 > just stay as links.
 >
 > I think that my setup is capable of displaying graphics because I can
 > see the GNU Emacs logo at Emacs startup.
 >
 > In principle, should iimage-mode work with Org-mode 6.06b, GNU Emacs
 > 22.1.1 on Windows XP Pro SP3? If so, I'll take a closer look for where I
 > may be going wrong.

I think you need some libraries in emacs\bin directory.  I have
libpng3.dll, libpng12.dll, libungif4.dll, libXpm.dll, xpm4.dll,
zlib1.dll there.  You should be able to download them from
http://gnuwin32.sourceforge.net/packages.html You may want to download
for jpeg as well (though it hasn't worked for me yet.)

HTH,
-- Manish


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--
Daniel Goldin
213.926.1960