Why Cant I view images within Outlook 2003

One of my users is having a relatively annoying issue, whereby she cannot view images (jpgs) that are inserted into an email.

Firstly I checked that she was viewing the email in html mode, which she was.
Then ss per usual I have read quite a few posts relating to other people experiences and learned that yes outlook does dump files that it deems safe into a temp store, I have therefore downloaded outlook tools and cleared this temp store location, rebooted outlook and still cant view the jpg in the email.

Any Suggestions?

Many Thanks

Ben