Sorry for the late reply, but I am still having the issue and I am currently running the latest beta patch (103419).
Edit: Also, the crashes only happen when loading an image. The image won't try to get downloaded if the .paa file isn't there. Another thing I noticed is that when my name is "[AG] Deezmon" on the server and in the squad.xml is written as Deezmon, only the info shows up on the players screen and the image will never show up unless I change my name to "Deezmon"
Edit2: Also, even though I doubt it makes any difference, the Squad.xml works perfectly in the Arma 3 Alpha and the server had been run on the same server box