Blender 2.49b Reference Image Setup for Modeling workflow.
This method of setting up reference image is popular on other software packages and I have previously used it in Max and Maya. I found that with a few adaptations, Blender 2.49b can use the same method. I feel this image reference setup is far more superior than the "Background Image" method. It is faster to setup and easier to adjust. The image setup technique is also applicable to other 3D programs and the latest versions of Blender
