Hi Kurt, AFAIK relative image paths do not work when FOP is used within Cocoon, due to FOP (or any Cocoon Serializer for that matter) not getting info about the location of the current XSLT file.
Maybe using http URLs would work? <fo:external-graphic src="http://myserver/images/thisone.gif"/> But I haven't tested it. Otherwise you'll have to use an absolute path, which you can make configurable in the sitemap or in a separate XML file. -Bertrand