Pictures are disabled by default for security reasons. There should be a info
bar across the top that says "Click here to download pictures. To help protec
your privacy, Outlook prevented automatic download of some pictures in this
message." I do not recommend disabling this security feature, since virus
and spam senders can (and sometimes do) use embedded images in emails to
distribute their content.
However, if you must change it:
Click TOOLS
Click TRUST CENTER
Under the "Automatic Download" section, you can change the options to
download pictures automatically.
(This might be a duplicate post, since I received a "server busy" error when
I clicked POST.)