ICS Paper Cuts
This shows the Gmail app, just after tapping to show images in an email. As you can see, it appears that I have now enabled showing images for all emails from this address.
However, at this point, and even with the check box as shown, that is still disabled. You actually have to tap again to enable auto-loading of images: the check mark, apparently, only means that you tapped to show photos this time (regardless of the text next to it). Incredibly confusing.