Just remove the "IMAQ Dispose" and it will certainly work better.
What flows in the image wire is ot the actual image data, but a pointer to the image, so the display on the front panel receives the pointer and go get the image data to display it.
The issue in the VI you posted is that you don't really know when the "IMAQ dispose" will execute, so if if it executes after the "IMAQ create image", the image buffer is released and there is no image data to be displayed.
Hope this helps
We have two ears and one mouth so that we can listen twice as much as we speak.
Epictetus
Antoine Chalons