Open your My Pictures folder or whatever you use/right click picture/Send To Mail Recipient/select
Make all my pictures smaller or Show me more options.
From XP Help:
[To send a photo in e-mail
Open My Pictures, and then open the folder containing the photo you want to send in e-mail.
Click the photo you want to send.
Under File and Folder Tasks, click E-mail this file.
In the Send Pictures via E-mail dialog box, click Make all my pictures smaller.
Windows makes a smaller photo file and attaches it to an e-mail message that displays a default
subject and text message.
In the To box, type the e-mail address of the person to receive the picture, change the subject and
message text if you want, and then click Send.
Notes
To open My Pictures, double-click the My Documents icon on your desktop, and then double-click the
My Pictures folder.
Use this procedure for photos of file size greater than 64 kilobytes (KB). To check the file size of
your photo, right-click the file, click Properties, and look at Size.
To send the photo without reducing the size of the file, click Keep the original sizes.
To change the settings for the size of the image, click Show more options.
If you have many pictures to share with others, you can publish them to the Web instead of sending
them in e-mail. For more information, click Related Topics.]