Thanks for the help -- but that didn't really help me with finding different instances of the pattern in a larger block of text. I found a different approach and I am now using the following -- works like a charm.
$tags=array
(
'#[img=(.?)](.?)[/img]#msi' => '<img src="'.$images_path.'\1" hspace="5" vspace="5" align="\2">'
);
$bodytext=preg_replace(array_keys($tags), array_values($tags), $bodytext);
Changes: 
into:
<img src="http://www.urlhere.com/shirt.gif" align="right">
Going to play around with patterns a bit to throw more variables in as needed.
Thanks for the help tho -- I am sure it will come in handy.
Kev
PS: How do I mark this resolved or does and admin have to do this?