Hi HuskyPup, what an interesting post! I have a website that has previously (3-4 years) been doing quite well for text based searches and also for image searches but I have noticed recently (I have foolishly tended not to monitor the image ranking results as often as word results)that the image results that were on pages 1 or 2 have now gone.
The way I had previously added images was to reduce the image to a thumbnail in order to help the speed of the page... ie.. 100x100 and that was also the actual size of the image in its location of /widget.jpg - Is this incorrect? Is it better to have a larger size image and reduce it for the text page where it may be inserted? Or, am I reading above that it is perhaps also better to create an html page to insert the image (jpeg) and add the meta tags etc.
My partner has a image based site as a budding widget artist but although great images doesn't rank anywhere for them.