To bond the 3D Cursor Plane to a displayed Located Image make sure that the "Select" icon (shaped like a grey arrow) in the workspace tree located to the right of the Located Image branch is selected. When you select this icon the grey arrow should turn into a black arrow indicating that this Image is now active.
Then select the Bond To Image button on the 3D Cursor Plane toolbar. The bounding box should turn into a red coloured box fitting closely to the located image. You should also be able to see the red cross-haris move over the Located Image.