This problem is caused by the image behaving like a character of text (and so leaving a space below it where the hanging part of a “y” or “g” would go), and is solved by using the vertical-align CSS property to indicate that no such space is needed. Almost any value of vertical-align will do; I’m fond of middle, personally.
img {
vertical-align: middle;
}
jsFiddle: http://jsfiddle.net/fRpK6/1/