Border-radius and box-shadow applied to image element. Note: the rounded corners and inset box-shadow doesn't display probably.
Using background-image CSS trick will solve the problem (view source code to find out how).
Note: Google Chrome (Windows version) does not display inset box shadow correctly. View this demo page with Mac Chrome or Firefox.
It works with any image size 
and inline content.
It works with or without the width and height attribute in the img tag. Note: this image also has a "left" class.
Read related article: CSS3 Rounded Image With jQuery
Thanks to Darcy Clarke for the jQuery code.