I have Windows XP Home with SP3 and use Outlook Express for my emails.
The only way I can email a picture to someone is as an attachment and this
is to email the file from My Pictures folder or by dragging the picture into
my email. This then sends the picture as an attachment.

Using the "Insert" link in my email does not work for me. I get as far as
"Browse" to select my picture and then my OE crashes each time also loosing
any text in my message.
HTML formatting is turned on and also ticked in the mail sending format.
Including a picture as a "Background" from the Format link works OK.

I have two questions;
1 How can I get my Insert link to work and
2 Is it possible to send a picture not as an attachment but within my email
and separate from the text and how is this done?