Outlook 2007 displaying image placeholder but no image?

Hi there, Can someone please help me with my problem?
I have just upgraded to Office 2007 and now whenever there is an image in an e-mail I can't view it? There is just a rectangle outline where the image should be? I can copy the image to paint etc. to view it, so it is being downloaded.
I thought it was a word issue as I was having the same issue with word, but by changing the default paste/text wrapping setting to any option other than "in line with text" and then unticking "show image placeholder" otion the image is viewable.
Has anyone experienced this problem? Is there a similar option within outlook to turn off the image placeholder?
I have tried uninstalling and re-installing and have been through the settings and options several times, and I just can't solve this problem!
Thanks in advance to anyone that can help me out with this!
Cheers!
-Whitchy-

After months of trying I found the solution to this problem!

It was posted on this site by websnooky and it works. As far as I am concerned this guy is a genuis!!!!

This is what he said:

Just make sure you backup your regitry first

I'v tried every advise given on any forum on the internet about this problem! Then I started to browse to the registry settings from Outlook. I stumbled upon one option which had a strange name: BlockHTTPImages!!!

I wondered why my outlook displays pictures nicely when starting it in safemode - it was not any of my addins, though.

Well changed the setting BlockHTTPImages from 1 to 0 - and my pictures started to get download AND displayed when my outlook was normally started!
Just use Regedit to browse to the following registry key:

\HKCU\Software\Microsoft\Office\12.0\Common\BlockHTTPImages and change the value 1 to 0 (zero).

That's it - start outlook and ENJOY!