When the size of an image in an embed element is set as on the example site in the URL, only the size of the image box is set, not the size of the image itself, while it should do so. The example includes the embedded image (left) and a normal image (right) for comparison. The left should be shown in the same way the right does.
Confirmed in shipping WebKit and Nightly WebKit.
This works fine in Gecko browsers, Opera, IE 5.2.3 (Mac), not tested on IE 6 or 7, but I think it works correctly there as well.
This appears to work as of r24286.