Some more info..
Red X instead of pics
There are several different reasons that pictures don't display in IE. Some
you can fix, and some you can't. A common one (that can only be fixed by the
Web site designer) is misconfigured HTML code that points to the wrong
location for the picture. For example, in writing the code for the page, the
designer may have pointed to a location on his/her local hard drive where
the picture is stored. The photo would show up when the designer previewed
it on his own computer, but you can't access his hard disk when viewing it
over the Internet. If you right click the red X and select Properties, it
will show you the location. If it looks like a local disk path (for example,
c:\graphics\picture.jpg), that's the problem. Contact the Web designer, if
possible, and let him/her know.
Another problem might be that the picture isn't in a format supported by IE
(for example, Corel PhotoPaint's .CPT or Adobe PhotoShop's .PSD formats). IE
supports the following image formats: .GIF, .JPG, .BMP, .ART, .WMF, .EMF,
..PNG, .MOV, .XBM, .AVI, .MPG, .MPEG. Again, there's nothing you can do about
this.
If neither of these is the problem, check to be sure Show Pictures is turned
on. Click Tools | Internet Options, click the Advanced tab, and under
Multimedia, ensure that Show Pictures is checked. Some images may need
ActiveX or Java to display. On the Security tab, click Default level for
Internet zone and ensure the setting is Medium