Although it could be. According to listing of /usr/lib, libjpeg is present. ldd `which links` reveals it's not linked with it. Also jpeg pictures from www.gentoo.org are displayed as broken images. If it is intentional due to a bug that was in JPEG code and caused crashes, I have already fixed the bug in the latest version (2.1pre15) AFAIK. Reproducible: Always Steps to Reproduce: 1. 2. 3.
This is a result of the LiveCD not being built with the jpeg USE flag and is done on purpose due to the implications of using the USE flag globally during the livecd-stage1 build. I can look into possibly using an /etc/portage overlay to have links link against libjpeg, but I would prefer not add this level of complexity to the LiveCD build, if it can be helped.
The main issue here is that libjpeg isn't available on all of the release media, just on x86/amd64, and only during the livecd-stage2 phase, which is due to splashutils being added. During livecd-stage1, there is no libjpeg available, so we cannot link against it. I've filed a bug to have the behavior of the links ebuild modified, but the maintainers have to accept it for me to proceed further.
This should be fixed as of the 2005.1 release.