I've upgraded a D6 site to D7.7 containing many images and using image_legacy and field_convert modules, converted the Image nodes over so they display correctly on the pages as image fields in an image content type (which includes title and body fields in addition to the node_image field). Displaying an image node then displays the image correctly.
However, the site has many blog entries with embedded HTML links of the form <IMG SRC="/image/view/1234/preview"> for embedding images that were uploaded to drupal in the blog page, per the documentation at http://drupal.org/node/47357.
I defined a View which is set to display as a Page, specifying the Format as an unformatted list, and set fields with only the "Content: Image" Field set to display. The page settings for the view are set with a Path of /image/view/%/preview and a contextual filter is set to "Content: Nid". The pager is set to 1 item. I also tried defining a Reference view, but I'm unclear on the exact purpose of this since it isn't documented in advanced_help?