After having these ads up for a week and following Google's instructions to create a new ad group I've had 9 impressions. Astonishingly low.
After chatting online with a rep (which I wasn't aware was an option before now) he told me you can't bid on the same keywords you have in another ad group because they will compete with each other. I had a hunch this was an issue but it seems SO flawed I assumed it couldn't be right and image search would be a separate deal. Google should let you show these new image search ads for the same keywords you have in your standard ad groups. I am covered for just about all searches I want be shown for on Google's standard search and I don't want to stop being shown there so I can be seen in Google Images. The rep told me to raise my bids to increase CTR to outperform my standard text ads. Great, so now THOSE ads won't show?
Seems flawed to me and the wording in Google's own help section is misleading and should mention that essentially you can't advertise on the same keyword in both standard search and Google images.