Many Thanks Maxim, Sorry for the delay - I was away last week. Same thing happens in the same source folder BUT I have found that if I re-open the drawing and open the 'external references palette' , if I click on saved path I confirm the location pathway as being correct. It then asks me whether I want to apply this to all images. Once I have done this, the next time I open the drawing, the images are there whether or not from the same source folder. Great that I have at least got this work around. Just wondered if there is a way of cutting out this step as the path is there - it just needs confirmation which my previous ACAD didn't.