Why are my images showing up as a red X?

http://support.microsoft.com/kb/2638687

1. Click Start, click Run (Or press Windows Key and R on your keyboard at the same time ), type regedit.exe, and then press ENTER. 
   
   
   (If you are prompted for an administrator password or for confirmation, type the password or provide confirmation.)
   
   
    

    

   
   
   
   
2. Locate the following registry subkey:
   
   Office 2010:
   HKEY_CURRENT_USER\Software\Microsoft\Office\14.0\Outlook\Security
    Office 2007:
   HKEY_CURRENT_USER\Software\Microsoft\Office\12.0\Outlook\Security
   Office 2003:
   HKEY_CURRENT_USER\Software\Microsoft\Office\11.0\Outlook\Security
   
   
    

    

   
   
   
   
3. In the right side window, double-click OutlookSecureTempFolder. Verify whether the folder noted is valid. You can copy and paste the folder path in Windows Explorer to verify this. 
   
   • If you do not see the OutlookSecureTempFolder entry, go to the next step.
   • If the folder does not exist on your computer, change the OutlookSecureTempFolder value to a valid folder path, for example C:\temp0\.
   
   
   
    

    

   
   
   
   
    

    

   
   
   
   
4. If the OutlookSecureTempFolder registry entry does not exist, you must create it manually. To do this, follow these steps:
   1. Right-click an empty area, point to New, and then click String Value. 
      
      
       

       

      
      
      
      
   2. Double-click OutlookSecureTempFolder, and then enter a valid folder path, for example C:\temp0\.
      
      
       

       

      
      
      
      
5. Restart Outlook.

Check your SecureTemp folder

You need to locate the SecureTemp folder and delete the contents (or the entire folder) then restart Outlook. The images should display correctly once you do this.

Outlook 2007, 2010, and 2013 on Windows 7/8, Vista:
* where 8A0VMD3A can be any random characters.

C:\Users\username\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\8A0VMD3A

Outlook 2007 & Outlook 2010 on Windows XP:
* where 8A0VMD3A can be any random characters.

C:\Documents and Settings\user\Local Settings\Temporary Internet Files\Content.Outlook\8A0VMD3A

Outlook 2000 – 2003 on Windows 7/8 or Vista:
* The OLK directory will end in a series of numbers.

C:\Users\username\AppData\Local\Microsoft\Windows\Temporary Internet Files\OLK*

Outlook 2000 – 2003 on Windows XP:
* The OLK directory will end in a series of numbers.

C:\Documents and Settings\username\Local Settings\Temporary Internet Files\OLK*

To quickly jump to the Temporary Internet Folder (TIF) in Windows 7 or Vista, type shell:cache in the Start menu’s Search field and press Enter. This will open Windows Explorer to the TIF file. Outlook’s SecureTemp folder should be visible (Content.Outlook or OLK*). If not, go to Windows Explorer’s Organize, Folder and Search Options menu. On the View tab, enable the option to show Hidden Files and Folders.