Outlook can only display images "inline" if the sender used HTML or Rich
Text format for the message and embedded the image into the body. If the
image was sent as an attachment, you will always receive it as an
attachment.
--
Jocelyn Fiorello
MVP - Outlook
*** Replies sent to my e-mail address will probably not be answered --
please reply only to the newsgroup to preserve the message thread. ***
Change your email format to HTML:
Open your TOOLS menu
Select OPTIONS...
Select the MAIL FORMAT tab
Now open a new message
Click in the body of the message
Select INSERT from the menu
Select PICTURE...
Browse to a picture that you have saved on your
hard drive and click OPEN
Click OK
To play with the location of the picture, Right-Click on it
and select PROPERTIES