I don't have Gmail but in Yahoo which is a webmail type, it doesn't allow the "Pasting" of pictures in the main body when "Composing". The pictures would need to be uploaded and there is no option for that. Instead, you'll need to "Attach" the picture if you want it sent. The attachment process DOES upload the picture from your computer to the message.

If you want to send HTML mail with extensive graphics, since you have Office 2003, you'll need to do it from Outlook or Outlook Express. Composing the mail on the local machine in Outoook/OE vs composing on webmail allows the picture to be saved correctly.

Hope this helps.

Grif