This problem of embedded pictures not being forwarded still exists in Windows 8 with the Outlook/hotmail.

25. July 2013 · Write a comment · Categories: Hotmail, Outlook.com · Tags: ,
When I forward emails with embedded pictures or images, only a blank rectangle is forwarded.  Even if I BC myself, still blank.  I have tried grouping by conversation (as recommended by Support) and un-grouping by conversation (as recommended by another Support person); still no success.  This has been going on since Hotmail became Outlook.  Is there a workaround or a fix on the horizon?