It probably means Webmail was unable to retrieve the image from the server the link in the email pointed to. If it were embedded in the email as an attachment, you have seen it or it would have an attachment link at the bottom.
Try clicking on Email Options on the left. Then click on HTML Display and check the box Display HTML in the body of email. Were there links on the bottom of the page to email attachments? If there were no links, then rather then being embedded in the email message, the picture images were linked from an external server and could not be retrieved or the server was not responding.
Thanks for the reply. The box Display HTML in the body of email was checked. There were no attachments at the end of the email. Just the white box with a small red X in it where the picture should heve been. I don't understand why Outlook can see the picture file and Webmail cannot. Maybe it's the way the picture was attached or embedded in the original email. Anyway, thanks for the replies.
You can find out whether the picture is embedded or linked by looking at the message source in Outlook, or view source in Webmail. An embedded image file will be encoded and you will see a large block of seemingly random alphanumeric characters under a header e.g. Content-Type: image/jpeg;, along with it's filename.
Linked images will just have a URL linked in the html code, e.g. pointing to the image filename on the host server. It may be that Outlook/IE cached the linked image when you opened it, but it's no longer available. If it's an embedded image, then we need to know more about what it is. Webmail won't embed Office file types that Outlook might open. But you would expect to see attached links.