Can an image be added to a placemark in Google Earth?
Google Earth questions in general
I don't have an answer for that but in general there are tons of stuff to be found under Help -> Google Earth Community. There are forums, FAQs, searches and all kinds of things in there.
Try poking around in there and see if you find anything in there.
I've done it a few times with Picasa Geotag function.
ditto...
Images can be added to Google Earth placemarks. If you are looking to share the placemark with anyone outside of your computer network, you'll need to publish the photo to some type of photo-hosting service. To insert the image:
1. Right-click on the Placemark and choose Properties.
2. In the Description tab of the Placemark, put in the HTML IMG syntax (example below):

Thanks....
If it was an image stored on my PC what would it be the path?
hack
What Ladd is saying is to take off your local machine and put it up somewhere like PhotoBucket.
Edit: If you don't want your image shared your link would be something like:
src="file:///c:mypicsyourpic.jpg"
Something like that. I forget exactly.
But no one but you on THAT machine could see your placemark image.
As a test I'm trying it myself.
So fine, I added my placemark, gave it an html img ... and now what?
What purpose does it serve now?
Save it as a KMZ...send via e-mail...
DDSM
Thanks for all the replies