I have added a background image to the world settings. However, it has disappeared from my 3D view and only shows when I view the scene from the camera. Does anyone know if there is something I can do to make it reappear?
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It's because you are in ortho view, so you will only see one pixel of the background image at a time (if you move the 3D view around, the background color should change).
Switch to perspective (Numpad 5), and it should appear normally.