  We compute the two-point image correlation function for bright galaxies in
the seventh data release of the Sloan Digital Sky Survey (SDSS) over angular
scales 0.01' <= \theta <= 120' and projected separations 0.01 Mpc <= r <= 10
Mpc. We restrict our analysis to SDSS galaxies with accurate spectroscopic
redshifts, and we find strong evidence for intrinsic alignment of the galaxy
images. On scales greater than r ~ 40 kpc, the intrinsic alignment of the SDSS
galaxy images compares well with the intrinsic alignment of galaxy images in a
Lambda-CDM universe, provided we impose Gaussian-random errors on the position
angles of the theoretical galaxies with a dispersion of 25 degrees. Without the
inclusion of these errors, the amplitude of the two-point image correlation
function for the theoretical galaxies is a factor of ~2 higher than it is for
the SDSS galaxies. We interpret this as a combination of modest position angle
errors for the SDSS galaxies, as well as a need for modest misalignment of mass
and light in the theoretical galaxies. The intrinsic alignment of the SDSS
galaxies shows no dependence on the specific star formation rates of the
galaxies and, at most, a very weak dependence on the colors and stellar masses
of the galaxies. At the ~3-sigma level, however, we find an indication that the
images of the most luminous SDSS galaxies are more strongly aligned with each
other than are the images of the least luminous SDSS galaxies.
