$destination parameter not used by content create links function

Thanks Amitaibu. I'm so sorry that I am not a coder. Otherwise, I would have definitely provided a patch. I'm trying to learn though. It (coding) seem so damn complicated to me. From where I sit, you guys are genius. Hopefully, I'll begin to grasp it one day and be able to contribute patches.

I was able to use drupal_get_destination() to redirect the user to the referenced entity. According to the api documentation:

Use drupal_get_destination() function to direct the user back to the referring page after completing a form. See http://api.drupal.org/api/drupal/includes%21common.inc/function/drupal_get_destination/7 . If a destination exists in the previous request, that destination is returned. As such, a destination can persist across multiple pages.

Entity Reference Prepopulate requires a link that looks something like this: node/add/article?[field_ref]=[id]. So, a link to add new content and prepopulate the entity reference field would look something like:

<a href="/node/add/[YOUR-CONTENT-TYPE-MACHINE-NAME]?[YOUR-ER-FIELD]=[nid]">Add a [YOUR-CONTENT-TYPE]</a>

Where [YOUR-ER-FIELD] is the name of the entity reference field and [nid] is the nid of the entity being referenced.

The entity reference prepopulate parameter and the drupal_get_destination() function can be used together to prepopulate the ER field and return the user to the referenced entity after completing the node/add/[content-type] form. This can be accomplished with Views and EVA (Entity Views Attach) modules.

Assuming Views module is already installed, install and enable the EVA module.
Create a View with an Entity Content display of child entities (for example, images) and configure the Entity Content display Settings as follows:

Entity content settings

Entity type: Node
Bundles: [THE-ENTITY-TYPE-BEING-REFERENCED]
Arguments: id

Contextual filters

Content: [Your-ENTITY-REFERENCE-FIELD] (configure the filter and validate by setting the Filter value format to 'Node ID')

Relationships

Content entity referenced from [YOUR-REFERENCE-FIELD] (this relationship is used to get the nid of the referenced entity. Add the content nid to your View field list and use this relationship)

In the View's Header or Footer, add a Global Text Area and set the text filter to PHP.
Insert the code below

<?php
global $base_url;
$destination = drupal_get_destination();
$url = $base_url . '/node/add/[YOUR-CHILD-CONTENT-TYPE]?field_gallery_reference=[nid]&';

$options = array(
  'query' => drupal_get_destination(),
  'attributes' => array(
    'class' => array('add-new'),
    'id' => 'add-new-[YOUR-CHILD-CONTENT-TYPE]',
  ),
);
print l(t('Add new Media'), $url, $options);
?>

Now when you are viewing a parent content type, you will have a link to add a child content type. Clicking the link should take you to the node/add form for the child content and the entity reference field should be prepopulated. When you save the child content, you should be redirected to the the parent.

I'm sure this could be accomplished in a more elegant manner, but it worked for me.