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There are two methods, inserting a picture into an email and attaching a picture as a file attachment. Lets see here:

Inserting a picture in Rich Text (HTML) format means the picture file is already open on the page when the message recipient opens the mail. The recipient can still save the picture file if they wish, but they do not have to worry about opening the picture, since it will be open when they receive the email. Attaching a picture file will work for all email. The picture is attached just like any file attachment. The recipient can open the file attachment or not, at their discretion. You attach a file using the Insert/file attachment menu option in the blank email window.
Alternatively, in the same File/insert menu, you have an option to Insert Picture... then a browse box will open up to select the particular picture you want to attach.

Here’s to Good Karma

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You can send images or pictures using MS Outlook Express. Open up MS Outlook Express and then click on the New message option, click on the Pin like symbol to attach files. After clicking on this pin like symbol, you will get a window on your screen. Now, select the files or images you want to attach and then click on OK option. You can follow this procedure a number of times to attach files, image or pictures with the email.