Do you have a red x in the picture place holder?
Normally, the fix for outlook using the wrong program to open a message is
to change the default image application - this is the application that opens
the message when you double click on it in Windows Explorer.
You can either change it using the Tools, File Types menu in Windows
Explorer or by right clicking on an image (of the same type you need to
change the default application for) and choosing Open with... at the bottom
of this menu is Choose program. Add a check to always use this program and
select the application (will need to browse for it). You can do this either
from My Documents or the Desktop.
If you want to use one application in Outlook and a different one from
windows explorer or the desktop (such as for editing), you'll need to right
click on it in windows explorer and choose the other program from the Open
with menu. Many applications will add themselves to the open with menu if
they can handle the file type, others (usually older ones) need selected
once by browsing for the program file.
I'm kinda surprised Print Shop took over as the image handler if it can't
open them directly. You may need to go into Tools, File Types (from Windows
Explorer) and find the extension type. If you see Restore button at the
bottom the dialog, click it. This should change it to the original one
windows signed. If not, choose Change and pick the fax viewer.
Also, empty the securetemp folder.This could be causing the print shop
error.
http://www.outlook-tips.net/archives/2003/20030828.htm