Have you had any luck doing what was suggested by pryrt in the second paragraph here: seeing what Outlook does with an e-mail having an embedded RTF/HTML image and doing likewise?

Give a man a fish:  <%-{-{-{-<

In reply to Re^3: Send Email With Picture Embedded in Body of Email by AnomalousMonk
in thread Send Email With Picture Embedded in Body of Email (SOLVED) by roho

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