I'm using Firefox as my browser & Thunderbird for my email program.
The basic steps should be similar for IE & outlook express but there could be some minor differences.

I'm using this one as my sample.
http://www.glitter-graphics.com/graphics/265304

Below the picture you will see download image
click that.
A window will pop up and tell you to "save as" {right click } for me is is "save image as"
click to save and save it to a folder or place you can find it easily.
In my pictures folder I have other folders for family pictures, scenery, graphics etc - just so things are easier to find.

now open up you email program and write /compose and email.
If you have 2 email accounts you can just send it to your self to test.
Now you have your write/compose window open and you should have something in the menu called Insert - click that and choose Image.
then use the button there to choose the file/picture that you saved

now in Thunderbird the pop up box has lots of options - change the size, add text, etc.

Then just click the OK button and it should get placed right into your email message.

Then send as normal.

Let me know if this works for you or I can load up Outlook ex and add any changes needed for it.

Just loaded OE and the steps are very similar so have fun.