Hi i have same problem with inability to add an image to Description field using <img> tagi resolved that if you hard code the url to image ( instead of using a field) it works. ( but this is almost usless)i also found that if you use the Media tag all works OK for first click of popup then popup break you on get image, no text fileds ANSWER is to use both <decscription> and <fileds> tags ( yes despite what the documentation says) put all your text fields in <Description> and all your media fields in <fields> and in <Media> and hey presto pop ups that always work
<configuration>
<title>Threatened Species - {TYPE}</title>
<description>
<![CDATA[<b>Site Name:</b><BR>{SITENAME}<BR>{PROJ_DESC}<BR><BR><b> Links: </b><BR><a href='{LINK}'><u>Factsheet</u></a><BR><a href='{LINK2}'><u>Website</u></a>]]>
</description>
<fields>
<field name="PIC"/>
<field name="PIC2"/>
<field name="PIC_LBL"/>
<field name="PIC2LBL"/>
</fields>
<medias>
<media type="image" title="{PIC_LBL} - Click to view larger" imagesource="{PIC}" imagelink="{PIC}"/>
<media type="image" title="{PIC2LBL} - Click to view larger" imagesource="{PIC2}" imagelink="{PIC2}"/>
</medias>
</configuration>