This should be simplicity itself but I've read and re-read what the Zope book has to say on this and I don't understand...
<img src="../images/ldmlMenu_01.png" width="170" height="2" border="0" tal:attributes="src here/images/ldmlMenu_01.png">
should, if my understanding is correct, replace the src attribute for the image with the path defined by the tal:attributes statement. My understanding is wrong because I get:
<img src="<img src="http://127.0.0.1:8080/ldml/images/ldmlMenu_01.png"; alt="" title="" height="2" width="170" border="0" />" width="170" height="2" border="0">
Just to add to the pile... if you really wanted that very string to be used (and you don't, you want the path, which is a method on that object), you would say something like <img src="../images/ldmlMenu_01.png" tal:attributes="src string:here/images/ldmlMenu_01.png"> to keep it from being interpreted by Zope. Not that this is used much, but still. --jcc