Sending an email with images (HTML) on a free email account seems to space out the images, even though there should not be!

Please see images to understand what I mean.

When I am sending with a recieving with a free email account, like hotmail, gmail, etc, when I position an image RIGHT below another image, they always seem to have a space between them. I can send the same email to a general email account (non free), and it works fine.

A simple test is sending this to a hotmail account:

<img src="http://img29.imageshack.us/img29/1986/image1kwq.png"><br><img src="http://img198.imageshack.us/img198/7645/image2dz.png">

And you'll get the space in between the images like I have, but only in a free style account.  The wierd thing is you can COMPOSE the message inside hotmail, and it looks fine, and then send it, and it gets ruined by the space. Am I missing something that hotmail/etc requires to remove those spaces in my HTML?

I'll attach an example, the left is the composing, the right is the result after its sent and I am viewing it. Maybe some CSS is required? etc?

Any suggestions?
example.png