I use this little snippet of code to retreive a jpeg image from the directory.
(I know all the data goes through to the client side since I traced it)
--CODE--
   $sr=ldap_read($ds,"$dnpic","jpegphoto=*",array("jpegphoto"));
   $info = ldap_get_entries($ds, $sr);
   Header("Content-type: image/jpeg");
   echo $info[0]["jpegphoto"][0];
   $f = fopen("/tmp/fil.jpg","w");
   fwrite($f,$info[0]["jpegphoto"][0]);
--CODE--

The file /tmp/fil.jpg will contain all bytes in the image up til the first NULL byte occurence where it is cut off. Using ldap_search() with appropriate params yields the same result. And I have tested to retreive the image
using LDAP command-line clients - works fine.

My php is --with-apache, --with-mysql, --with-ldap, --with-imap
LDAP: RCS Version: $Id: ldap.c,v 1.66 1999/02/01 02:31:10 sas Exp $

Nothing relevant in my php3.ini