Yes xrefs are available in LT.
Images cannot be inserted but if inserted using full AutoCAD they can be managed within LT.
Downside is that you are not able to freeze individual layers.
Our office has used thrid party express tools for LT but these do not allow individual layer freezing.
I do not think you can clip xrefs in LT.
The good and the bad of LT!
Regards



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