Go to /components/com_k2/models/item.php line 368 and replace the Description section with this:

		$item->feedimage='';

		if (JFile::exists(JPATH_SITE.DS.'media'.DS.'k2'.DS.'items'.DS.'cache'.DS.md5("Image".$item->id).'_S.jpg'))
			$item->feedimage = '<img align=left style=padding-right:5px; src='.JURI::root().'media/k2/items/cache/'.md5("Image".$item->id).'_S.jpg>';	

		if ($params->get('feedText')=='1'){
			$item->description=$item->feedimage.$item->fulltext;
		}
		else if ($params->get('feedText')=='2'){
			$item->description=$item->feedimage.$item->introtext.'<br/>'.$item->fulltext;
			
		}
		else {
			$item->description=$item->feedimage.$item->introtext;
		}