Remove unnecessary scale factor. This made all images added via SVG three times bigger than they need to be. The scale factor doesn't exist in PSGraphics2D.
Here's where this scale factor was introduced:
http://cvs.apache.org/viewcvs.cgi/xml-fop/src/org/apache/fop/svg/Attic/PDFGraphics2D.java?r1=1.18&r2=1.19&diff_format=h
Also reported by Jay Chiu for Fop 0.20.5 (Feb 2004)
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xmlgraphics/fop/trunk/src/java/org/apache/fop/svg/PDFGraphics2D.java