The spread of that information has already extended to Google competitor Microsoft Virtual Earth, which has started to include KML files in Live Search Maps.

So, if you create a standard KML file which includes links to local images in popups or overlays and open it in the new Google Earth, you will not be able to see the images.

This could be programmers generating KML through code, people manually creating KML files by hand (a tedious job, but doable), or people getting KML from third party applications.

On your second computer, just double-click the KML file in your cloud folder. It will open Earth with all of your placemarks. This isn’t a perfect solution.