Outlook image in signature turns into red x (500pts)

At our office we use a small version of our company logo in the signatures on our emails. The image is a bmp file of 7kb. I have one user who is having problems with the image turning into a red X. When she creates the message the signature image appears fine. When she sends the email the recipient sees the image fine. However if the recipient emails her back the image turns into a red X.

I have tried removing the image and reinserting it into the signature. I have tried changing the location of the image file. It used to be on one of our file servers, I copied it locally to her C: drive. I have checked to make sure that the "dont download images" box was unchecked.

Not sure what it could be...
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Joseph DalyAsked:
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pghzooitConnect With a Mentor Commented:
I have also had the same problem. I solved it by turning the company logo from a bmp to a link to a pic on our website.  When a user replies to the email the way you have it set up outlook strips the pic(which is viewed as an attachment)  Think about when you send and excel doc to someone and they reply back, it isn't still attached when they reply to you.  Therefore, try inserting a pic that is accessable via the internet.
this is more than likely to do with Winword being the editor when the signature was created. Or not being enabled.

Click tools, options and the mail format tab. Turn off both ticks in the top part of the box.
I've had a similar problem in the past that seemed to be caused by the format of the email... I think that the image will only be displayed if the replying email is also in RTF or HTML format.

So if the reply is in a different format (ie plain text) the image cannot be displayed... But i'm far from an expert in this area, so it'll be interesting to see what the experts say!
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Is your default email format HTML or Rich Text??

Check that this is the same as the other machines...  I had a similar problem when one user changed their default email format to HTML...

Also browse to the users profile path (ie c:\docs and settings\user\application data\microsoft\signatures\ )

in here are all of your sig files, you can edit them without having to use the outlook editor.... Use word or whatever to edit them, and just ensure it all works properly in there first...
Joseph DalyAuthor Commented:
Both the recipient and senders outlook are configured to use HTML as the default email type. I dont think it is the outlook editor that is the problem because the signature works at first. Its only on the reply that it fails.
Out of interest, is there a way to force Outlook to keep attachments when replying etc?
The accepted solution is not a proper solution. Its just a workaround.
Try this.

1. Locate the Outlook Temporary Items folder by opening the Registry and locating HKEY_CURRENT_USER\Software\Microsoft\Office\11.0\Outlook\Security\OutlookSecureTempFolder
Navigate to the value of this Key. It should be something like: %USERPROFILE%\Local Settings\Temporary Internet Files\OLK3D\ where OLK3D is some randomly generated string that always starts with OLK
2. Quit Outlook
3. Delete the contents of the folder
4. Launch Outlook
Just in case anyones interested, I had this exact same problem - I was craeting the sig in word (same as I always do), images were showing up fine, but when I saved it all then opened a new email, the images were coming up with a red cross in them.

To work around this, I went into the c:\docs&settings\user\appdata\microsoft\signatures folder and deleted all the signature files and image folders.

Then I re-opened outlook and created the sig from scratch - all worked fine. Dont ask me why, but that definately worked.
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