It's best not to structure your source documents this way: markup in nested elements should not be escaped. But the damage is done, and the quick way out might be output the image using
<xsl:value-of select="run" disable-output-escaping="yes"/>
The trouble with this is that it doesn't work in all environments (notably Firefox). That's not a bug in Firefox, it's an intrinsic limitation of disable-output-escaping - it's an instruction to the serializer to output text as-is, without escaping, and it has no effect in an environment where the output isn't sent to a serializer.
Michael Kay
http://www.saxonica.com/
Author, XSLT 2.0 and XPath 2.0 Programmer's Reference