Unable to see embedded bmp or jpg file in OWA email

We use Exchange2003 sp2 and OWA is accessed via IE 7. One of our users has highlighted an issue with OWA, whereby when they receive an email with an embedded bmp or jpg file, the graphic is removed and replaced by a red cross and untitled attachment. In OWA the message is shown to have an attachment, but in Outlook it doesn't. If a message has an embedded .jpg files, it works fine.

 If you go to forward the email, the graphic will then show. I've tried right clicking on the red cross and selecting "Show Picture" and IE multimedia security settings are set to show pictures.

 When I right click on the red cross I see the following:-
 New%2520Image.JPG?Security=2
This made me think it might be was the Outlook attachment blocking settings, as it mentions level 1 and 2 -  http://support.microsoft.com/?kbid=555001. However I can't see these two file extensions listed there. Does anyone have any advice on how to resolve this please?
Many thanks
messagingdwsAsked:
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SubsunCommented:
Did you check in any other browser?
Run ExBPA and make sure that you are not missing any critical patch..
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messagingdwsAuthor Commented:
Thanks for posting, but the links are mainly referring to the Outlook client. We're only getting the problem in OWA. Sorry if my question wasn't that clear.
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fnichelsonCommented:
May sound silly, have you deleted your internet temp files to include offline content?
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Member_2_4839798Commented:
Have you tried resetting the security values with IE7? could also try adding the site to the trusted zone and try toggling between the compatibility view...

Cheers

Michael
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Member_2_4839798Commented:
Good catch "fnichelson", that may also resolve the issue ;)
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messagingdwsAuthor Commented:
Thanks, temp int files have been removed and the site is trusted. I'm not sure about the compatibilty view - is that IE8? We're running IE7.
I'm going to check tonight from my PC at home as i have a different browser.
It's strange that it's only doing this to certain file types.
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fnichelsonCommented:
Look at this.  

http://www.emailsignature.eu/phpBB2/owa-picture-images-t1024.html

OWA does not support embedded images, so you need to define your default signature with linked image and I recommend that you also generate a Text version of your HTML.

signOWA.exe will then deploy both your default HTML and TXT.

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messagingdwsAuthor Commented:
Thanks fnichelson, i'd seen th post before but only seems to relate to signature files. I tested this on two browsers at home, IE7 and Avant and both worked ok, so it must be a browser security setting somewhere. Just not sure where yet? any ideas
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SubsunCommented:
So you are able to browse the OWA with other browser with out any issue..
Check this, Else try by resetting to defaults or just reinstall/Upgrade the IE.

IE.JPG
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messagingdwsAuthor Commented:
Thanks Subsun, I've already confirmed the settings as per your screen shot. I'm not sure which other settings would be relelvant to this.
I'm going to take down the settings and file version from my browser at home and compare them with the office settings tomorrow.
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messagingdwsAuthor Commented:
I haven't been able to resolve this, so i'm going to escalate to MS. Thanks for all your suggestions
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messagingdwsAuthor Commented:
I couldn't resolve this but the posts did assiste with further troubleshooting
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