I have something VERY similar happening to me!  I was hoping you would get an answer, sigh.

I have a non-profit organization and receive 100's of emails each and everyday. For YEARS now I have stored images (banners, logos, etc.) in my drafts or other files I have started in my OE 6.0. They are NOT from my computer, but rather have remote addresses on them from my website. When I want to insert them in a letter I'm composing......I simply copy the image and then paste it into the letter wherever. All of a sudden......I was hearing from people that the image was now the "dreaded red x"?? When I looked at the images......now ALL of them have this code...... "mhtml:mid://00001712/!" before the url of the graphic?? In other words......looks like this....

mhtml:mid://00001712/!http://www.MyWebsite.org/img/ORIGINALS/safety.gif .......

instead of like this....... http://www.MyWebsite.org/img/ORIGINALS/safety.gif 

Above each of the images that I store.....I also have their url. That way......if I want to put them into a post on my forums.....I could just right click on them and "copy shortcut". HOWEVER......the same thing......now when I do that......I get the stupid code in front of the url!???

Does anyone know what this is.......and more importantly.....how the heck to get rid of it???

Thanks sooooooooo much!.......Yo

I have the same problem.  It started after the update by msn Saturday
Evening.  I thought it due to a new security software from CA being loaded
and spent 2 hours with Road Runner my internet provider, last night
completely removing and reinstalling the software, they did multiple test on
their end and it has come down to MSN problems.  I have no idea how to fix
it. except do a restore back to Friday.

Any ideas anyone?