Hey,

Recently I read that search engines only follow text links, and not image links.

Is this true?

Thanks,
Jason

Engines will follow image links, that is, images wrapped with the "a" tag. Make sure to add an alt tag to the linked images with your keyword phrases for the pages they link to.
Example:
<a href="SomePage.htm"><img src="SomeImage.jpg" alt="KeywordPhraseForSomePage"></a>

Most do and will follow image links but will give more weight to and follow more a text link over an image link most of the time. Check out our http://www.auxic.com/fa_searchspiders.htm article for a few other ideas to help out search engines on your site. Hope this helps you out.

What many sites do to combat the text-over-image relevancy issue is put a small line of links at the bottom of the page that mirrors the existing navigation menu, but in text form. This isn't considered repetitive or spamming at all, since it's actually beneficial in sites with a lot of content per page.

But to answer your question (even though others already have), yes, Google does follow image links.

Yeah make sure you have alt tags this will get you better results

alt tags are almost as powerful as anchor text.