The basic answer is, there should only be one [imgView release] in the example code (whether it's after addSubview or in dealloc). However, I would remove [imgView release] from dealloc and leave it after addSubview.
There is a catch on the iPhone; with didReceiveMemoryWarning, you could have objects (including an entire view) released out from under you. If you have an application-wide retain set and you don't respect memory then you could find the application simply being killed.
A good example is if you think of a nested set of 3 views, View 1-> View 2-> View 3. Next, consider the 'viewDidLoad' and 'viewDidUnload' calls. If the user is currently in 'View 3', it's possible that View1 is unloaded, and this is where it gets nasty. If you allocated an object inside viewDidLoad and didn't release it after adding it to the subview, then your object isn't released when view1 is unloaded, but, view1 is still unloaded. viewDidLoad will run again and your code will run again, but now you've got two instantiations of your object instead of one; one object will be in nowhereland with the previously-unloaded view and the new object will be for the currently visible view. Rinse, lather, and repeat and you find your application crashing from memory leaks.
In this example, if the given block of code is volatile and has a chance to be executed again (whether because of memory or an unloaded view), I would remove [imgView release]; from dealloc and leave it after addSubView.
Here is a link on basic retain/release concepts:
http://www.otierney.net/objective-c.html#retain