After desperately trying to find a counterexample myself, I took a look in Counterexamples in Topology by Steen & Seebach (Unfortunately, it was borrowed from the library till today, so I couldn't get early enough for the bounty ;-) ), and found a path-connected, but not locally path-connected space. In fact, this is the only such space in the book which is not Hausdorff, which is a condition, since a Hausdorff space which is the continuous image of the unit interval $I$ must be locally path-connected. This is due to the fact that quotient maps preserve local (path-)connectedness.
The space I am talking about is the Integer Broom. It is the set $X$ of points with polar coordinates $\{(n,\theta)\}$ in the plane $\mathbb R^2$ where $n$ is a nonnegative integer and $\theta\in\{1/n\mid n\in\mathbb N\}\cup\{0\}$. The topology is generated by the basis consisting of all sets $U\times V$ where $U$ is open in the right order topology $\tau_{ro}$ on the nonnegative integers and $V$ is open in $\{1/n\mid n\in\mathbb N\}\cup\{0\}$ in the topology induced by the reals. The only neighborhood of the origin is $X$ itself. This space $X$ is also homeomorphic to the quotient space obtained by identifying all points $(0,\theta)$ in $(\mathbb N,\tau_{ro})\times\{1/n\mid n\in\mathbb N\}\cup\{0\}$ with euclidean coordinates . For a picture see http://en.wikipedia.org/wiki/Integer_broom_topology.
This space is not locally connected since $(1,0)$ does not have a local basis of connected sets. It is compact and not $T_1$ since the only neighborhood of the origin is $X$. Therefore, it makes a good candidate for an image of the unit interval.
Note that the space consists of countably many points, only one of which (the origin) is closed. We can find a closed subset of $I$ whose complement is a countably infinite union of disjoint open intervals, namely the sequence $S:=\{1/n\mid n\in\mathbb N\}\cup\{0\}$. We'll map $S$ to the origin. Let us assume the points except the origin are indexed $\{p_n\mid n\in\mathbb N\}$, and the components of $I\setminus S$ are indexed $\{C_m\mid m\in\mathbb N\}$. Then we just map $C_n$ to $p_n$ and $S$ to the origin, which determines a map $f:I\to X$. Then the preimage of each point $p_n$ is open and so is the preimage of each open set, thus $f$ is continuous. By construction, it is surjective, so $X$ can indeed be called a "path", though it looks quite different.
In the end we have found a path which is not locally path-connected, not even locally connected.