By design, Outlook does not display attached images inline. Outlook is a
business application. OE is targeted to consumers and the needs of the two
groups are different in this area. Exchange Administrators consider inline
display a security issue and don't want it.
Outlook only shows images inline with HTML mail items or RTF mail items with
OLE embedded images. Images in plain text mail items only show as
attachments (that you can open or save).
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