Windows 98 Will Not Display .gif Files

I’m having a problem where Windows 98 will not display any .gif files that are on the client, but will display them ok if I go out to a web site on the internet. For example, some html pages I developed will not display the .gif files on my PC, butwhen I publish the site out on the internet I’m able to view the .gif files with no problem.

I’ve all sorts of things to get it to work with no success, including: adjusting Internet Explorer settings, installing patches to IE 5.5 (Service packs 1 & 2); installing IE 6; and reinstalling Windows 98.
None of these attempts have worked yet.

The technical support from the vendor where I bought the PC doesn’t know what could be causing the problem either.