Snagit (Windows): Send Email from Snagit not embedding image in Outlook 2007

First verify the following option is checked in SnagIt.  Click Tools > Program Preferences > Program Options tab > Embed images when sending email.

If the problem persists hit (windows key + R) and type regedit.  The registry editor will open.  Make sure Outlook is completely shut down.

Browse to HKEY_CURRENT_USER\Software\Microsoft\Office\12.0\Outlook\Options\Mail
A registry key with "Send Pictures With Document" should be there with a value of 0.  Right-click on this entry and delete it.

Try performing the task again.

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