I believe the issue comes from the fact you are using double quotes (") instead of single quotes (').
your syntax should look more like this
$img = '<a href="URL1"><img src="URL2 " alt="text" /></a>';
check out this for further... view reply
More issues showing up in my elgg 1.6.1 install :
1/ thumbnails created for groups or uploaded images and shown on the welcome page (custom_index) for example, are randomly showing. it is not a constant issue. Sometime half of them show up, a...
I had the same problem a week ago. and unable to replicate it on my test server. I found out that I had tunred on the debug plugin on and that it had reached a massive size due to some irrelevant warnings being dumped over and over again (at each... view reply