It seems to me that posts to this thread have degraded to Microsoft-bashing, and with little wonder. An admitted "known problem" should well have been solved within the TWO YEARS that many of us have been complaining about this.
Many of us feel self-righteously indignant because we have cooperated with Microsoft, linking or sending examples of the problem, ostensibly to the team charged with improving the Windows Live Mail client (program). While I continue to wonder why action has not been taken, I would like once again to state the problem as I have come to know it.
- Mail messages created within WLM or MS Outlook, which include images embedded in the HTML, may be sent back and forth between these two mail clients with NO PROBLEM; that is, the images appear in the replies where they belong.
- These same messages, when replied-to by recipients using other clients (eg: Thunderbird and some Webmail utilities), will still show the images in the proper place when received by WLM and Outlook. The same goes for messages that are created within Thunderbird or Webmail in the first place.
- HOWEVER: the message received as a reply from a recipient using Thunderbird or some Webmail utilities, or a message generated within Thunderbird or certain Webmail utilities, will still show images intact, but then cannot be replied-to or forwarded by WLM without having the images replaced by placeholders-with-red-Xs and the images appended as attachments by WLM. At this point, WLM gives the message, "One or more pictures in this message could not be found. (etc.)" This is NOT the case with an Outlook user, however, Outlook keeps the images embedded properly.
My experience is that the problem always exhibits itself when a WLM user corresponds back and forth with a Thunderbird user. Outlook and Thunderbird, on the other hand, work properly with one another. Moreover, the previous version of WLM (2009, I believe) did not have this problem.
That's my observation and I'm sticking with it. Alternative experiences are more than welcome; let's please continue to provide worthwhile information that can be used to effect a fix.