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Maybe reading the posts there will help. I do remember that I posted in it regarding my daughter and I using stationery not on the other's machine which displayed just fine without being "attachmentized".
The only other thing I can think of is that this has something to do with either a temp internet folder issue or an XP SP2 issue.
[I should note that I don't use either FP or Outlook, so really can't comment on how they react to these issues.]
I always use Thunderbird for doing HTML newsletters since it seems to have a way of including the images encoded in the text of the letter itself, and not as attachments. It's very easy to use, just a point-n-click sort of wysiwyg interface - and the images are encoded at the bottom of the HTML source. The <img src=""> statements contain something which somehow references the encoded images displayed below the text.
This is very, very nice since everything can be viewed properly if the user downloads the mail, and then views it when offline (if it's mail that has to grab images from your site, these images won't be loaded and your user will see blank spots). The images also don't seem to be attachments, though I haven't begun to study what mime-types and other HTTP-transfer stuff goes on with e-mail attachments. All just one single file.
Get yourself thunderbird and see if in the HTML compose pane you can add images; it will probably work straight off. Mail yourself one of these and see how it comes in. If thunderbird doesn't work straight off, try getting the Mozilla browser, which will include something called Composer, which is a wysiwyg editor which might be necessary for the wysiwyg html thing in your mails to work.
I now notice that thunderbird doesn't let you make tables; maybe just try Mozilla and the mail program that comes with that browser, it may have been that which I used for writing the newsletter.
Yes, the images are base64 encoded. But thunderbird does this for you.
I don't see why you couldn't make a link out of those images - just edit the HTML produced by thunderbird and change that ole image into a link.
Could be that XP SP2 doesn't like inline inclusion of images in this way - I don't know, I haven't updated to SP2 yet and I don't do any e-mail on windows anyways, I usually only go to windows to check out 'how will this be for windows users.' I don't like the idea of e-mail on windows very much, it sounds like opening the door to problems and a slow-running 'puter. I spent much more time twitting around with stuff on when I was on windows - not having to bother about junk infesting your computer can save you a lot of time and headaches. Thunderbird will help you in this way, it's probably pretty good at keeping the junk out.