XEmacs 21.5.0 isn't backwards compatible in how it treats glyphs.
Suppose I paste this into the *scratch* buffer:
 (let ((glyph (make-glyph
	       (vector 'xpm :file "~/alpha.xpm"))))
    (make-annotation glyph nil 'text (get-buffer (current-buffer)))
    (insert "TEXT\n")
    (make-annotation glyph nil 'text (get-buffer (current-buffer)))
    (insert "TEXT\n"))
Then I go the end of this expression and hit C-x C-e.
With 21.2.47, I get
   [picture]TEXT
   [picture]TEXT
With 21.5.0, I get
   TEXT
   TEXT
   [picture][picture]
Glancing at the documentation for make-annotation and the info page
for "Annotation Basics", I think the old behavior is correct -- I
think this is what the 'text layout is supposed to do -- but I'm not
positive.
-- 
J. H. Palmieri                      
Dept of Mathematics, Box 354350    mailto:palmieriļ¼ math.washington.edu
University of Washington	   
http://www.math.washington.edu/~palmieri/
Seattle, WA 98195-4350