I have the same issues with Outlook XP and also 2003.
All Options I found are set, even when I open the messages manually all
content is shown up correctly. But embedded images are not printed (from
within using automation OOM Code).
We are running Outlook 2003 on Windows XP SP2. Our users have the same
problem intermittently with printing embedded images. We've tested on
multiple printer models; sometimes a message with an image prints fine,
sometimes all we get is the box with the red x. Any ideas on a fix?