Thunderbird not displaying images inline

[edwink]

An answer at last. I am no expert so the answer had to be fairly simple for me to find it.
Gif's.
If I convert images from jpeg to gif before sending, they will then appear in the preview box (insert dialogue box) and in the message itself. Also I discovered that I can receive gifs inline but not jpegs.
I feel sure this must be something to do with thunderbirds configuration (I use v 2) but I wouldn't know how to re-configure it and as long as I can send and receive images inline I don't need to.
Hoorah! (Sorry, that sounded a bit camp didn't it.)

[alternety]

tbird 2.0.0.23 now appears to open the mail (still without displaying images) but puts up a message that makes you either click to load the images in this mail or lets you authorize it for this source. If you click to allow the source, you have to fill out/approve an address book form. The address form fills in an incorrect email address by assuming the web site plus mail@ at is a rational email address. Wrong of course.

An extra step to see embedded images is not acceptable. Note that in many people's parlance, embedded images are not "attachments" and constantly referring to them in menu items and discussions is confusing. Is there a way to set tbird to always load images. Other that using a couple of tools for which I have no skills nor interest (I am just a regular old email user - email clients are not my life). I always decide if an email should be opened or first examined seeing all the header and content in a text viewer so nothing executes. That is a small number of mails. Having to allow every mail with images is much of the total volume. Wrong place to force the users interaction. What would be real useful is to provide a simple choice on the right click menu to look at the raw contents (like you get with view> message source.

I have started to list other things that do not work the way I believe they should. I will make that a different post. I installed tbird a year or so ago and simply got too annoyed and removed it. I have been thrown back to this by the completely unacceptable behavior of Outlook Express when handling pop accounts; forced by MS switching to pop as of 1 Sept.

[Ron1949]

One more thing to try.

Thunderbird 2.0.0.23 on Win7-64.
It seems each version has different settings. I could not find some of the suggestions on mine.
After trying everything on these pages and getting nowhere I finally won. .
Go into Address Book and for each contact you want images from check "Allow remote images in HTML".
Unless anybody know how to global this it has to be done one contact at a time.