Five months ago, I posted this question, but no one was able to help.

QUESTION:  How do I disable picture compression in Outlook 2007?

When I send a message, Outlook 2007 automatically recompresses my inserted
jpeg pictures, even after following Microsoft's HELP instructions for
deactivating picture compression.

When inserted, pictures look fine.  After a message has been sent, however,
one can easily see that Outlook reduces the quality of inserted pictures
(for example, they are not nearly as sharp as what I save in Photoshop CS3
and subsequently insert into my messages).

I am a photographer.  I don't want Microsoft modifying my work.  To me, this
"feature" of automatically compressing images is almost as bad as a virus.
Currently, my only option is to use Outlook Express instead of Outlook 2007
when sending pictures.  Unfortunately, this is extremely inconvenient,
especially when managing messages.  Attaching pictures is not an option.

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FYI, this is what Microsoft's Help says:
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Change the Compress Pictures default settings

The Compress Pictures feature automatically reduces the file size of
pictures when you save your document. You can also delete the cropped parts
of pictures from a file by using this feature.

The Automatically perform basic compression on save option applies only to
the document that is open in the current program. All of the other options
in the Compression Settings dialog box apply to all documents in Office
Excel 2007, Office PowerPoint 2007, Office Word 2007, and Office Outlook
2007.

1.  Select a picture in the document.

2.  Under Picture Tools, on the Format tab, in the Adjust group, click
Compress Pictures.

3.  Click Options, and then do one or more of the following:

* To stop automatic reduction of picture file size when you save the
document, clear the Automatically perform basic compression on save check
box.  [I DID THIS]

* To automatically delete cropped areas of pictures when you save the
document, select the Delete cropped areas of pictures check box, and then
click OK.  [I DIDN'T DO THIS]

* To automatically save cropped areas of pictures, clear the Delete cropped
areas of pictures check box.  [I DIDN'T DO THIS]

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Dave