I am really confused.

I open Tools, Options, Mail Format, Signatures.

Select New Signature,

Type in the name, NEW.

Type in some various misc. text.

Then select the icon to add an image.

I then select an image from my hard drive. and select "Insert"

When OL2007 gets back to the signature creation screen, the image is no
where to be seen. It doesn't display at all, not even a red X.

If I create a new email with that signature, I get a red X and a "the image
cannot be displayed" error.

What am I doing wrong?

How do I create signatures with images?

Thanks!