Outlook email not showing images

I have a 300+user farm, all on Citrix, all using Office 2003 with Outlook hooked to Exchange.  One of my users has the problem that when he receives an email where someone has placed an image in the body he only gets the image place holder and a red x at the top corner.  All the other users are working fine.  I'll run down some of the applicable settings and fixes we've attempted.

All users, including this guy has the following Outlook security and image settings:
Options --> Security --> Download Pictures --> Change Automatic Download Settings
Unchecked Don't download pictures or other content automatically in html email (then the next two selections are greyed out and I assume not doing anything)
Unchecked Warn me before downloading content...

They are all in HTML format and using Word as the default email editor.

One strange thing is that when this guy forwards or reply's to a message, the images once not visible suddenly show up in the body.  But when he receives the message they just have the placeholder and red x.

We've tested all the above settings and having them on or off does not seem to make any difference with this one user.  I even deleted his profile and had it create a new profile all together but the problem persisted.  I'm wondering if there is some security setting from his exchange mailbox causing this, or a corrupt AD account.  My next steps are basically to blast this user from the system all together, AD and Exchange and just set him up as a new user.  i just would like to find a less lethal solution before I pull the trigger on that idea.
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DAMAdminAsked:
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AndreDekoltaCommented:
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AndreDekoltaCommented:
Hello  DAMAdmin!

See:  http://www.slipstick.com/mail1/html.htm

Andre...
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