This feature doesn’t work in 2.49 and up, but it seems like it should. So I can’t report it as a bug, but it really bugs me!
Using the GLSL mode in viewport.
I’m using the small gray plane as a reference object for mapping the image on the large plane. You can see the details of the image mapping in the open panels.
The image shows that although the reference plane correctly informs the render of the image size and location, it is not shown in the viewport, which is very difficult to use. Procedural textures WILL scale in the viewport, so the lack of image-mapped scaling seems like an oversight.
Before anybody says ‘why don’t you use UV mapping?’, that is not the point.
This seems like a relatively easy code fix.
Hopefully I can gather a crowd noise so this issue gets on the ToDo list.
Maybe on the Viewport improvement branch of GSOC 2012?