Image captcha is made up from two modules in drupal - captcha and textimage. I have patched textimage for this site to make it work a little differently:
I passed these small patches onto Fabiano (the modules' maintainer) in case he finds any interesting/useful for inclusion.
I have just found another problem/issue I will need to look into - if you don't accept cookies the captcha appears not to work and, what's worse, it doesn't tell you any reason why (i.e. that it needs cookies). Should it really need cookies for a simple captcha submission?
I think the captcha modules need an overhaul, and possibly a rethink so as to address accessibilities issues better than my hack above, remove the need for cookies, and possibly with a better plug-in system where different forms of captcha can be easily slotted in?