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According to the GitHub documentation, the Markdown syntax for inserting an image is:
Format: 
Following their example syntax, I can't seem to be able to make it work.
Even the GitHub logo example does not work.
What am I missing? Or is it a GitHub bug?
You may be missing the full path/location to the image you want to include in your Markdown file.
The example given is a relative path, where the image rests on the same server as the file. In the help, it would assume the image is actually located at:
https://github.com/images/logo.png
But that is not a valid file or location.
In order to make sure you can render an image no matter where you're viewing it from, it's safer to include the full URL, which would include the domain name.
So your example would instead be using something similar to this:
In response to the answer above:
As of January 30th, 2013, GitHub now allow relative links.
Make sure that you append ?raw=true to the end of the URL, though. Here is an example:
Due to the way GitHub handles URL's, if you do not append ?raw=true to the source URL your browser will attempt to load the page which displays the image.
I like to test my Markdown locally before pushing somewhere viewable only through a URL. So I want a relative URL that I can use anywhere. GitHub now supports those.
Your images subdirectory, assuming it's in the same directory as your Markdown file, doesn't need a slash at the beginning — try:
markdown
instead of
markdown
This is how it must be:
The ./ tells GitHub to begin in the home directory of the repository. then you can add a / and after that the folder name and name of the image like the example I gave.
