It is an issue with the configuration of your friends, not yours.
You might want to check in which format they receive your emails.
It sounds like this is in Plain Text instead of HTML.
See
http://www.msoutlook.info/question/142
--
Robert Sparnaaij [MVP-Outlook]
Coauthor, Configuring Microsoft Outlook 2003
http://www.howto-outlook.com/
Outlook FAQ, HowTo, Downloads, Add-Ins and more
http://www.msoutlook.info/
Real World Questions, Real World Answers
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"Di" <(E-Mail Removed)> wrote in message
news:20733E7B-CD61-447F-BEE7-(E-Mail Removed)...
> I have Outlook 2003. I use insert pictures to insert a picture in the
> body
> of the email. Some of my Outlook 2003 recipients can display the pictures
> fine in the body of the email when they receive. Other Outlook 2003
> recipients receive the pictures as attachments. I even send myself an
> email
> with the inserted pictures, and they are in the body of the email - not
> attached. What is the setting to have the picture display in the body of
> the
> email? I have tried Tools, Security, Download Pictures and cleared the
> check
> box but it isn't working for my friends.