I personally wouldn't allow it, and I don't have any rules lawyer players - YET, but I like having everything thought out beforehand in case someone tries to pull some bull. Given the LONG thread on this topic awhile ago I don't think it's that clear cut - hence why I was worried about it.
Some people will argue that the very fact that you get some random number of images that must be within 5ft of you or another image as implying that the caster gets to place them. They would say, if I get two images why would they have to be arranged (I=image, C=caster)
ICI and not CII
Thus, they would say that since the spell doesn't tell them where the images have to be placed, they can place them themselves.
These same people would then say that if the image is placed in a flanking position, why would the target not suffer flanking penalties (and sneak attack damage from a rogue).
All I'm saying that I would allow the caster to determine where the images are located but if he should place one in flanking position, it wouldn't flank and thus the target could eliminate one image as his target.
IceBear