I am stumped on this. I've spent some hours researching fiddling with setup. I have a user who gets RED X where an image should be. When he forwards it, you can see the image in the forwarding window and some user's can see it when receiving it (except for him). HTML format, word 2003 as email editor. Computer is patched. Windows Vista with office 2003 professional. You don't get prompted to download the pic as it is embedded. the techrepublic post below was exactly my problem but nobody there found a solution either.
Any help would be highly appreciated.