This would be possible only if Word is the email editor, since the Outlook
editor provides no information about the insertion point. I just recorded a
macro in Word that showed what method to use:
Selection.InlineShapes.AddPicture FileName:= _
"C:\Documents and Settings\me.LAN\My Documents\My
Pictures\Dumka2.jpg" _
, LinkToFile:=False, SaveWithDocument:=True
You should be able to do the same thing with Word's macro recorder and take
it from there.

Signature
Sue Mosher, Outlook MVP
Outlook and Exchange solutions at http://www.slipstick.com
Author of
Microsoft Outlook Programming - Jumpstart for
Administrators, Power Users, and Developers
http://www.outlookcode.com/jumpstart.aspx
> Hi there,
> I know very little about macro writing -- which is not very helpful because
[quoted text clipped - 28 lines]
> Jonathan
> New Zealand