Outloox XP: embedded pictures won't show

Hi there I have a few people in an office that are using officeXP Most of them can get pictures that are embedded in the email document (not attached to) to show automatically. 2 howerver lost the ability to recently. They all have NAV 2003 and i thought script blocking might be the culprit, so I disabled it but that didnt help. all it shows is a little red X placeholder in the top left corner where the image should be any ideas? I don't think it's the stupid update that MS put out for office that cripples outlook by not allowing any kinds of attachments or embedded objects in an email, beacuse the attached pics work fine, it's just embedded ones . Yor assistance would be greatly appreciated......G

Not something simple like, outlook is set to text receive only is it?

Nope, HTML. It used to work, i can pull up lettters from 3 months ago that will work, it's almost as if something is stripping them off as they come in now, and the wierdest thing is rt cliking the object does nothing, rather than the usual properties menu....... G