STOP THE PRESSES!!
There is another way to do this without using html!!!
I just kept thinking about the process....what the change in code was essentially doing was telling the system to parse the question text field just like it parses text in the forum specified (in my case forumid 13). So, because I enabled html in forum 13 it would parse any html I entered in the quiz question, and hence display my images.
BUT, I got to thinking......maybe the problem with using the vbcodes (in my case using vbcodes didn't work...I just got the image url as a link) was because it wasn't told what forum to mimic for parsing vbcodes. In other words.....if I have vbcode enabled in forum 13 and I tell it to mimic forum 13 (by replacing the X in the previous code) and then I USE vbcode in the quiz question will it work? The answer is YES!!!! I tried it! (so actually right now, I can use both html and vbcodes to insert images....unless I remove the html permissions for forum 13).
So for anyone who can't get images to show up in quiz questions using vbcode (ie. you get a link instead of an image) all you need to do is tell it to mimic one of your forums that has vbcode enabled (all of mine do, so any forum number will work) and then use VBCODE to insert your images!!!
I prefer this method as I'm always hesitant to enable html anywhere, even for other mods/admins.
Where's the happy dancing emoticon???