Chrome downloads PNG image links. I want them to open for viewing in a new tab. How do I make Chrome do that?

The web server is probably serving the image using the image/x-png MIME type. Chrome does not recognise this as an image (as of August 2012 February 2013), hence offers the file as a download.

image/x-png is a legacy MIME type from the days before it got its official name, image/png, in 1996. However, when Internet Explorer uploads an image it does so using image/x-png "for backward compatibility". I believe this was the case up to IE8, and was "fixed" in IE9. If the web server does not correctly handle this (the web server should detect this non-standard MIME type and treat it as image/png), then it may serve up the client-provided MIME type to other users, including to Google Chrome. Additionally, some web sites will serve up all PNGs as image/x-png.

If you're the web developer you should detect incoming image/x-png and treat it as image-png (never serve up image/x-png).

If you're the user report it as a bug and see @kriegaex's answer for a workaround.

@Tom Clift is right, and here is my workaround for it: use Chrome extension Redirector and add a rule replacing the Content-Type header. That's it. :-)