I myself (having used Outlook 2007) don't know enough about these things to know whether it might be something about your recipients' mail settings or not. But if you're able to send an email successfully to yourself with the image showing inline, it might mean that something about your version of Outlook (what version is it, btw? 2003? 2007? 2010?) is triggering the removal of the image from the body of the message. But I would think if that were the case, then your recipients would at least get the notification "some images have been removed for your safety; click here to display them." Incidentally, you said you sent the test emails to yourself. I take it you viewed those messages in your offline client (Outlook). Did you also view them in your webmail to see if they displayed inline there as well? As another resource, you might want to check the Outlook forums here. I've used them in the past and have gotten good help. I did a quick search there for your issue and found two from 2010 here and here. In neither case did the OP continue the thread, so I have no idea if anything was resolved, but the answers didn't seem to encouraging. :-( But if your version of Outlook is more recent than those available at the time, there may be different settings to try, so you may wish to inquire there anyway. ???

That is exactly what I have been doing. I've tried both Plain text and Rich text but it will not let me paste anything. Any ideas how I can get it to accept " paste" Thanks

Making up a phone number when creating your email account is not a good idea since they use that number to contact you should there be an attack on your account or if you lost your info and they needed to resend it to you, they would be sending it to a phone number you can not reach to get that info and it could be someones actual phone number and they would be the one that got your critical information. You can instead give an alternate email address that is real where they can send you that information. I had that very thing happen recently with my gmail account, I accessed my account from an unknown, to them, device from a different state and it sent out an alert wanting to know if it was really me or if someone was trying to access my account. It was sent to my other email address that I provided, I was able to simply let them know it was me and it was a device I would be using. Had I provided my phone number they would have put out an automated call or text stating the same thing. There is an option to just skip that page and go on. Not everyone has a cell phone. Not everyone has texting. I believe that you can put in the phone number and request a call not text, then when you go into your account settings you can go in and remove the phone number, if it was set for text that option is not available or that is how it has been in the past for gmail. I set up a new yahoo account not long ago for one of my neighbors and was able to do so with out a cellphone because she does not have a cell phone. Yahoo has however been making so many changes and many are not for the better so it could have changed. So many people have left yahoo due to some of these changes.

Click "New Email" as if you are going to compose an email. At the top of the new email is a "Signatures" tab. Click that and it will let you add a permanent signature.