My question is: Am I reading MSDN wrong OR is MSDN wrong? I am trying to reference an image Resource via relative URI.
The MSDN page titled
The reason, when running as a separate assembly, that your Relative Pack URI must begin with ../
or no leading backslash is because of how relative URIs are used, from MSDN (emphasis mine):
Absolute vs. Relative Pack URIs
...
If a leading backslash is used, however, the relative pack URI reference is then considered relative to the root of the application.
Therefore if you'd like the images to remain relative to your referenced assembly, simply omit the leading slash or use ../
if in a sub-folder.
See the image below for an example of how this looks at runtime: