Usually it is a path issue. i.e image location is not what you are setting up.
If you have images folder in your gwt module's public folder you need to use im.setUrl(GWT.getModuleBaseURL()+"/images/"+menuItem.getImg());
If you have images in your war/images you need to use
im.setUrl(GWT.getHostPageBaseURL()+"/images/"+menuItem.getImg());
Also you can always use FireFox/FireBug's Network/Image console to check which URL is being accessed.