Just thought I would relate some problems which consumed a lot of time unnecessarily (implied: lots of other users' time) due to the img_assist and image module authors assuming that admins have prior familiarity with their modules (4.7.2, btw). I think the image module is finally working now (there's an "image" content type, which I can create and publish), although the img_assist module still doesn't seem to work.
After getting the image and img_assist modules into the right place (not under {drupal_root}/modules/contrib/, argh), I still wasn't seeing any upload links on content add pages.
When I was administering these modules in drupal, I was getting the message "Make sure you have a working image toolkit installed and enabled, for more information see: the settings page", which is a horrible error message. "More information", my sasparilla. This message needs to be fixed! The image module has very poor documentation; it does not mention its crucial dependencies. The whole image-handling chain in Drupal seems to be bad about documenting dependencies and intelligibly warning about their absence.
I stumbled around and eventually figured out that I had to install libraries (GD or ImageMagick?). Luckily, it was very easy to install GD for PHP4 under Debian:
sudo apt-get install php4-gd
followed by a restart of apache, which caused the image module to start working (not img_assist, though).