What determines whether Yahoo Mail Classic will display an attachment icon for an embedded picture?

I am running Outlook 2000 SP-3 on a Windows XP SP3 o.s.

Email # 1:  Sent to me from an outside company.  It has a logo as part of its signature.
Email # 2:  I right click the logo in email # 1 and save it as "picture1.jpg" to my desktop.  I create a new signature in Outlook and insert picture1.jpg into my signature.  I compose a new email that for the purposes of this discussion we will call email # 2.

I send both to a Yahoo account:
Email # 1 is forwarded to the Yahoo account from my Outlook.
Email # 2 is sent directly to the Yahoo account from my Outlook (since my Outlook is composing a new email).

In the Yahoo account,
Email # 1 has *no* attachment icon in Inbox view.  When the message is opened, the embedded logo is visible in the body of the email.
Email # 2 has an attachment icon in Inbox view.  The embedded logo is visible in the body of the email.  The embedded logo is also listed in the attachments section with a link where the attachment can be scanned and downloaded.

Why does one show no attachments and the other show attachments?
brianp111Asked:
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peakpeakCommented:
Diff is that one is composed by another email client than yours.
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peakpeakCommented:
It depends on the format used. #1 is in HTML format and doesn't need a separate attachment for the logo. Your outlook is probably set to use RTF format and to bring along the logo it uses an attachment for #2. (Yahoo will then convert RTF to HTML)
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brianp111Author Commented:
Hi peakpeak,

Email # 2 *was* in HTML, not rtf, which makes this all the more puzzling.  Any other ideas?
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peakpeakCommented:
Then it's another format of HTML than the one received from outside.
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peakpeakCommented:
Also, how do you determin the email format? You cannot do it on Yahoo side.
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brianp111Author Commented:
Outlook controls the format via Tools-->Options-->Mail Format.
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peakpeakCommented:
Yep. Experiment with other formats and you'll see the difference
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brianp111Author Commented:
Hi peakpeak,

I still don't understand.  I still have a case where 2 emails both in HTML format using the same embedded picture cause different results.

I do understand what you're pointing out with different formats - for example, an HTML formatted email can show up as having attachments when handled by a client set to plain text.

However, this situation is different: 2 emails, both HTML, both using the same embeded picture, same setting on recipient/client = different results.
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peakpeakCommented:
I've seen another difference: If the mail is composed by Word the message will show up as an attachment envelope (in OL2007) in addition to the message itself but not if composed by OL's own editor.
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