I just thought I'd tell the followers of this problem what my workaround is.
Every time I try to forward an email and get the message beginning with "One or more of the pictures in this message could not be found .............." I know WLM is about to destroy my imbedded pictures and I cancel the attempt.
If I then log on to my ISP mail server directly, I can forward the email without it being destroyed even though apparently WLM is somehow connected with my ISP email server (Bell Sympatico in Canada).
I don't understand it but it works for me.
Have any of you other folks found a workaround??