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Looks like it is Outlook 2003 issue. Could you please clarify the the following questions:
No the problem is only with outlook 2003 that the images are added as a atatchment and the page is displayed as a test and not as html.
– Is the behaviour occur if you use the Stationery?
– Are you able to re-produce without using the stationery (i.e standard html email with embedded image)?