Hi. Open the picture to be sent in a pic viewer, such as paint or Microsoft
Picture Editor, then click "Edit" > "Select All > "Edit" > "Copy" > then your
pic is on your clipboard ready for you to paste is somewhere. Create a new
message, make sure your cursur is flashing somewhere in the body of it,
somewhere you would like the pic to be, right click there and choose "Paste".
I should show itself as the image then and not as a file. From there you
can arrange it pretty easily just as you would with text, like having it
align in the middle, or the right, or even resize.
There also may be a setting under "Tools" > "Options" in your Outlook that
allows you to force how attachments are sent, depending on your email
program. I just did a quik glance in Outlook XP and didn't see anything in
it.