I recently installed SBS 2003 with two users both configured identically(?). One user is able to access downloaded pictures in e-mails through the exchange server. The other user is not. I have configered outlook 2003 to NOT block downloaded pictures. The user access that fails, gets only picture placeholders. The above is true when both users access their e-mail on a different machine and a different Outlook setup -- one Outlook is part of Office Pro, the other Oulook was setup from the server. This appears to be server based.

Everything work OK in OWA? If so, then it is an outlook profile/setup issue.