BJ asked:
How can I get the alt property within an <img src=...> to be pre formatted or at least can I get line breaks in it?
If the browser doesn't wrap the alt contents, then it's a bug in the browser interface, IMO. You can either try using literal breaks or just hope the browser wraps intelligently, but I know of browsers which do neither.
Sorry I can't answer the SGML one off the top of my head, but surely the web contains the answer for the particular DTD you're using? I can't think of any way of inlining images, at least.
Here's a related question to both of them: when sending an xhtml attachment to an email, and attaching referenced images, how do you refer to them from the xhtml part? Just curious. It's not something I make a habit of trying to do, but it would be nice to know how to do it from GNU/Linux.