There’s ‘Why are there gaps between image rows in tables when the layout engine is in the Standards mode?’ in Mozilla Web Developer FAQ (And here‘s more detailed explanation)
I also saw this issue mentioned in meyer’s ‘CSS: The Definitive Guide’.
But I’ve tested it on firefox 10.0.2, ie8 and chrome 17.0.963.56, and all resulted in no gaps at all.
Here’s the tag I used.
<table>
<tr>
<td style="padding:0; background-color:red;">
<img src="https://developer.mozilla.org/@api/deki/files/718/=Images-tables-gaps-figure1.gif" />
</td>
</tr>
</table>
Are you absolutely certain you’re in Standards mode on the page you’re testing? If your page isn’t fully compliant, the browser may be changing to quirks mode without asking – in which case the images do not have a gap. (Check here for examples of how to find if your browser is using standards or quirks mode)
The following page does exhibit the gap in Chrome and IE, at least. Remove the doctype declaration, and you’ll see no gaps. Keep it, and you’ll see the gap.