Make sure the photo you are attaching is not open in
another program.
Make sure attachments are enabled:
Tools, Safety Options, Security, uncheck "Block images..." and also
uncheck "Do not allow attachments..."
Also go to Tools, Options, Send, Mail Sending Format, HTML Settings,
make sure "Send pictures with messages" is checked.
Also, go to Tools, Options, Read, and uncheck "Read all
messages in plain text".
If you have done all that, and still have problems, your antivirus is
likely to be the cause.