I had multiple students have issues with images in pop-ups not appearing in an assignment this summer. If you've noticed the same issue on v7 then I have a work around: upload the image to dropbox and give your image a web link. Weirdly you can't use Google Drive for this (AFAIK). As a work around it has the disadvantage that images will load up more slowly than if they were in the KMZ but at least it works. Here's the specific steps that you can give students:
1] In the Layers column of the bottom left of the Google Earth screen, untick everything (except terrain if you can see it). Delete any features from the last tutorial in the Places column.
2] The image to the left is a photo at this URL
Save it somewhere sensible.
right click the photo > save as
3] Set up a dropbox Account if you haven’t got one,
4] Access your Dropbox file store via the web
enter the ‘public’ folder in the list. Anything put in here is available on the web.
Now click the upload icon . Its at the top of the screen.
Choose the Portree photo and upload it.
5] You have now uploaded the photo to the public folder on your Dropbox website and it has a URL. To get the URL:
right click the photo > copy public link > Enter it into a new browser tab to see that it works.
6] Now we will access it in Google Earth. Click ‘temporary places’ folder to make it active. Create a placemark anywhere and in the dialog box :
- Name it ‘Anywhere photo’ > Click ‘Add image’ > paste the photo URL > click OK
- Back in Google Earth click the placemark you have created. You should see a pop up balloon appear with your photo in it.