Outlook unable to display embedded images

The subject is an XPP SP3 workstation in a Win Svr SBS Std R2 network environment.
Outlook 2003 is used as an email client connected to the Exchange server.
Recently,Outlook is unable to display any embedded graphic image files. Images appears as an empty boxe with a red cross at one corner.
I have tried removing all files from the user's
C:\Documents and Settings\<user>\Local Settings\Temporary Internet Files\OLK34\
But it does not appear to resolve the problem.
I have also tried changing the editor from HTML to RTF and Word 2003. All without any success.

Any suggestions/tips for troubleshooting would be gratefully received. With thanks in advance.
garychuAsked:
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war1Commented:
Hello garychu,

1. Outlook blocks images. Here is how to unblock them
http://office.microsoft.com/en-us/outlook/HP010859521033.aspx

2. By default, Outlook 2003 blocks all HTML content that is referenced by an external location.  Here is how to turn if off
http://support.microsoft.com/kb/831608


Hope this helps!
war1
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garychuAuthor Commented:
Thanks for the prompt response, war1.
I have since done some tests. And now have reasons to suspect that the problem could be at the sender's end. At least one sender has been identified.
The sender is on the same LAN and domain.
If the source of the problem is the sender, are there things that I can check out?
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war1Commented:
garychu, check if sender has a security program like antivirus that is deleting the images.
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