1. With the cursor where you want the picture click on Insert > Picture.
2. To make sure recipients receive the pictures click on Tools > Options > Send tab and under Mail Sending Format click on HTML settings.
3. Make sure the box for Send pictures with messages is checked.
If what you want is to create a clip art signature to send with every message try this link.
http://email.about.com/library/weekly/aa021400a.htm
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