I'll attach two files to demonstrate the problem. Put both files (example.svg and blue.svg) into the same directory, and open example.svg in Inkscape. The image should show a blue square in the middle, but instead shows a red cross with the words "Linked image not found". Batik Squiggle and the Adobe SVG Viewer both show the blue square.
I can reproduce this in Inkscape 0.46pre3.
I'll attach two files to demonstrate the problem. Put both files (example.svg and blue.svg) into the same directory, and open example.svg in Inkscape. The image should show a blue square in the middle, but instead shows a red cross with the words "Linked image not found". Batik Squiggle and the Adobe SVG Viewer both show the blue square.