I have this same problem, and can see others are frustrated because the questions asked are not being answered properly. Windows live will not forward emails that I received with embedded photos, exactly as I received them. In otherwords, I received an email with embedded photos. All is fine. I can view photos correctly. However, if I forward that same email with imbedded photos, the photos do not remain imbedded in the emails as I originally received it. The photos disappear, leaving blank boxes when I forward the message. In fact I get an error box indicating that all photos will not be included in the message. Do I want to continue. I am hoping you understand this, as others with the same problem can't seem to get the message across as to the issue.