I was using the old Atahualpa and this was not a problem no I dont know what confifuration I have wrong. I have (as you will see) both the image and then bleow the title of the image on this site:

http://aussiepubcalls.com.au

however on this site when I use the default settings its fine:
http://roadmaps.aussiepubcalls.com.au
What have I done wrong?

What versions of Atahualpa, WP and PHP?
Can you point out exactally where the problem is cropping up on the page?

I am using Atahualpa,WordPress 2.8.4, PHP 5.2.5, and its in the sidebar I think the image link is A passion for craft and then below its also as the title of that.
TIA

in the one it works you have 'http://aussiepubcalls.com.au/images/apfc_logo.gif'
in the one it fails you have 'http://aussiepubcalls.com.au/images/text.jpg' which doesn't exist at that location

no that only because that image does not exists I was playing around what I mean is it shows the TITLE and the image not just the image with the link as you can see in this page, it only shows the image:

http://roadmaps.aussiepubcalls.com.au

GO to the widgets and edit the right sidebar and look at the options you have set for the 'Links' widget. Do you have both 'Show link image' and 'Show Link Name' checked?

lol that was it and so simple thankyou so much!