And there is no Infobar telling you about any blocked pictures?
Try emptying your Outlook Temp Folder when Outlook is closed and then try
again.
See http://www.howto-outlook.com/faq/securetemp.htm
I've emptied the Outlook Temp Folder, and I still only see a blank outlined
square where there should be a picture.
Sometime there is an Info Bar telling me about blocked pictures, and
sometimes there is no Info Bar. Either way, if I click on the bar to
download pictures or not, the squares remain the same with no photo showing.
Could you check the referenced location for the Cache folder in the
registry?
You can find instructions for it here; http://www.msoutlook.info/question/403