Images embedded in received email messages show as red X in empty box. Show when forwarded.

How about

http://ask-leo.com/why_dont_pictures_show_up_in_the_emails_i_send_or_receive.html

Where is the image located?  If it's a web link, is the web link available?

Is HTML is enabled in Outlook?  

Hello hustedj,

Here are some solutions that you have not tried.  Make the IE changes as well, since IE is closely tied to Outlook.
http://askbobrankin.com/red_x_appears_instead_of_image.html

Hope this helps!
war1

It's embedded - for example I have a picture (jpg file) on my hard drive and I want to send it as a picture (not as an attachment) to someone here in my company. Both of us use Microsoft Outlook client.  So I compose a new email message.  I click down in the body of the message, and then click on the "Insert" menu and choose "picture" > "From file..." and it allows me to browse to the file on my hard drive and I select it.  It inserts a "copy" of the picture.  Everyone (both sender and receiver) uses HTML to send and receive/read their emails here at my company.  When the recipient receives the email I send to her, it only shows a blank square and a little red x.  She has checked her Security settings both in her Outlook program and in Internet Explorer. It's set to automatically download pictures.  I'm on her safe sender list.  She says that she tried deleting the OLK folder but it didn't help.
Thanks for any other help/suggestions

Thank you war1 - but it doesn't apply.  I had my user check her IE security settings and they are set to download pictures.  The pictures are not coming from web sites outside the company.  The pictures are coming from poeple inside the company who send them embedded - they have the pictures on their PCs. Or another example is our corporate training dept sends out an email newsletter style message alerting employees of training seminars coming up in our training rooms and those show up as red Xs as well.   Something else to note - I just sent her an email instructing her once more to double-check her security format and edit/send format in Outlook - I opened the two property dialog boxes and did an ALT+PrtScrn and pasted the images into the email.  She was able to see those!
This is a real stumper, eh??  :-(

Have you tried all the solutions from the link that I posted?

Did the user really delete the files in OKLxx folder?  OLKxx folder is difficult to access.

War1, THank you very much for your response.  I really appreciate yours and everyone else's.  But none of those solutions on that link you posted apply to this problem.  Those solutions are all geared toward users of MS Outlook Express Internet Mail and Internet Explorer.  Yes, my users did check their Internet Explorer settings - those are set to show pictures and to send pictures as your website suggested.  But the pictures that are being sent are not originating from a website.  They are not coming from the internet.  They are digital images on other users computers within our company - on our own network behind our firewall.  And they are not using Outlook Express.  They are using Microsoft Outlook (completely different program) on a company network running on WIndows Server 2003, and their email accounts are set up as clients on the MS Exchange Server 2003.  So the solutions for Outlook Express do not apply.  But still, I really appreciate your time and efforts...  please keep the suggestions coming.  I'll continue to try anything you guys suggest, short of the command DEL *.*   :)

Are you using Google Desktop?  The most recent update has caused problem with Outlook.  Disable Google Desktop and test.

Good idea war1!  Thanks.  I had to have a user remove Google Desktop just yesterday so he could open attached email messages (.msg files).  They wouldn't open.   I didn't even think about that causing this problem.  I will ask my guinea pig user to remove it and see what happens.  I'll keep you posted.
Thanks.

Well, as a follow up to the last suggestion, Google Desktop wasn't the problem.  However, my colleague had one of the users run CCleaner.exe and that did the trick.  I'm going to try it on my other two users to see if it fixes their problem.

Thank you everyone for your time!

THanks for your help, I did run a program called Ccleaner and this also seemed to help with this issue for the most part.