Clarence, If you are using Outlook Express you need to "Insert" the picture -- not "Attach" it.

While composing the mail, look at the tool bar and there should be a small picture of a mountain. When you are at the point in your message where you want the picture, Click the mountain picture and it will prompt you for the name and location on your computer, where the pic is stored. You can also click on the "Insert" at the top of your compose window and choose 'Picture".

Doing either causes each picture to be treated as an object in your message. You can insert or delete text before and after the picture.