Outlook 2003 – Can’t Paste Screen Capture Anymore

Outlook 2003 used to be able to take a screen capture and paste it into the body of an email.

Now when I paste, it inserts an icon that represents an image (the icon is so tiny, but it appears to have a white page, a red rectangle, a blue curved arrow, and a yellow sad face)

When I right click on the icon and choose properties, it opens a picture dialog box, and the source of the picture is outbind:/// and then a bunch of GUID values

Did a recent update from Microsoft change the security settings to prevent you from being able to paste images into Outlook?

When I send a test email to myself with this icon in it, the original pasted image is not attached, and the only image in the email is that tiny icon.