If you ever run into an issue in Outlook 2003 where images are displayed as a red x or if you have an issue opening up attachments. You may need to clear you Outlook Secure Temp Folder.
Here are the steps to do so:
1. Exit Outlook
2. Open your registry with regedt32
3. Go to HCUSoftwareMicrosoftOffice11.0OutlookSecurity
4. Copy the value in OutlookSecureTempFolder, it should look like
“C:Documents and SettingsusernameLocal SettingsTemporary Internet FilesContent.OutlookYLCQ3KBR”
5. Paste what you copied into explorer.
6. Select all and delete.
7. Open up Outlook and you’ll be able to see embedded images and open up attachments again.