It looks like (relative) urls for image nodes are handled differently than for other nodes such as plugins and hotspots. Is this intentional or an oversight?

The difference manifests itself for example in the oft-discussed case of "embedding" a panorama on a facebook wall. This loads an swf file with optional query parameters so one can specify an xml file to load. The krpano player then succesfully loads the xml from a relative path, and loads plugins (both swf and images) just fine but it fails to load the panorama image. Using an http sniffer, it turns out that krpano.swf attempts to fetch the images from facebook.com servers (ie: relative to the html page containing the swf instead of relative to the krpano.swf or the xml file). This can be worked around by specifying absolute paths for the image node. However, other node types (plugin, hotspot, include) will succesfully load their resources from their relative paths.

Sorry, I can no longer reproduce this. Must have been user-error.