External Unparsed Entities

This may seem elementary, but can someone please tell me why the following
code(this is only an excerpt from the relevant XML file) will not import my
JPEG? Is there an XSLT alternative to importing the file?

<?xml version="1.0" standalone="no"?>
<?xml-stylesheet type="text-xsl" href="F1_2_BROWSER.xsl"?>
<!DOCTYPE MESSAGE [
<!ELEMENT MESSAGE (IMAGE,REF*,MIT*,MSG*)>
<!ENTITY LOGO SYSTEM "team.jpg" NDATA JPEG>
<!NOTATION JPEG SYSTEM "team.jpg">	
<!ELEMENT IMAGE EMPTY>
<!ATTLIST IMAGE SOURCE ENTITY #REQUIRED>
<!ELEMENT REF ( #PCDATA)>
<!ELEMENT MIT ( #PCDATA)>
<!ELEMENT MSG ( #PCDATA)>
]>
<MESSAGE>
	<IMAGE SOURCE="LOGO"/>
	<REF>11 235656</REF>
	<REF>IT 12345678</REF>
	<MIT>499235400490724</MIT>
	<MSG/>
	
<MSG>-----------------------------------------------------------------------
-------</MSG>
</MESSAGE>

Thanks in advance,

Brad Williams
XML/EDI Developer
First American Credco
bawillliams@xxxxxxxxxxx
(619) 938-7146



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