Outlook 2007 refuses to embed images in outgoing mail

When i send a mail and my signature contains a logo, it is not transmitted outside my organisation. All my colleagues that also use a signature can see it just fine ?

If i go to "Sent Mail" and look in the source of that mail, i see that the image reference is something like "C:\Users\...logo.gif". Why does it not embed the image ?

Apparently it is only me and a few colleagues that has this problem.

In previous versions of Outlook, if you wanted to embed a link () to a picture instead of embedding the actual picture in emails, you would go to Tools-> Options-> Mail Format tab-> Internet Format button and in the dialog under the heading “HTML options” you would uncheck “When an HTML message contains pictures located on the Internet, send a copy of the pictures instead of the reference to their location”.

But this heading and checkbox doesn't exist in this location on Outlook 2007. Has it moved to a new location?

Yes. In a manner of speaking. Because now it only exist in the registry;
[HKEY_CURRENT_USER\Software\Microsoft\Office\12.0\Outlook\Options\Mail] ->DWORD Name; "Send Pictures With Document" (note spaces)

With a value of 1 you’ll include the picture with the message instead of as a link.
If the value is set to 0 or when the key is missing you’ll send a link.

When the option was set in a previous version of Outlook, the setting is migrated during an upgrade.

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