downloaded images are blocked

I am using Outlook 2003. For as long as I have used it I have been able to
download attached images. Now when I select to download the images, it still
displays a red X at all images, even though it thinks the images are
downloaded. I have tried to empty the OLK folder (Documents and
Settings\username\Local Settings\Temporary Internet Files\OLKxxx) as posted
in another discussion, but it still only downloads the Xs. I also cannot find
(see) through the Microsoft folder tree the Local Settings or Temporary
Internet Files folders even though I see it when saving an attachment from an
email or can find it through the program Outlook Tools.