Hi,
in 3.4.2-3.4.4, images are displayed in PDF articles... but they are NOT displayed, when the image is within a table cell.
Also, there is a bug with the frontpage generating. I filed bug reports, and some are already fixed (but not yet released): http://ez.no/content/advancedsearch/?SearchText=pdf&SearchButton=Search+bugs&SearchContentClassID=20&SubTreeArray=306
Images are included. Try installing the Gallery package, and try the URL : content/pdf/<image node id>. For embeded images, template overrides are needed.