2
Where is the image that you're trying to display? Is it:
1. on a webserver somewhere
2. uploaded to your site via the image manager
3. uploaded to CBB via using the module's upload function when making a post
4. on your local PC
What format is the image file (.png, .jpg, .jpg, etc) and is the file format permitted by your setup?
FWIW, I use method 3. above to display images and it works fine on XOOPS 2.3.2b
HTH