Just to add to this:
Adding an ALT attribute (alternative text) to all of your images is a usability best practice and can also help with your SEO efforts.
Here's a (fairly old) video from Matt Cutts, head of Google's web spam team, that highlights the importance of not ignoring ALT attributes:
http://www.youtube.com/watch?v=3NbuDpB_BTc
And here's an article from Rand Fishkin that briefly touches on the topic:
http://www.seomoz.org/blog/perfecting-keyword-targeting-on-page-optimization
Specifically:
"Alt Attribute - Surprisingly, the alt attribute, long thought to carry little SEO weight, was shown to have quite a robust correlation with high rankings in our studies. Thus, we strongly advise the use of a graphic image/photo/illustration on important keyword-targeted pages with the term/phrase employed in the alt attribute of the _img _tag."