A family of Microsoft word processing software products for creating web, email, and print documents.
To get a picture to display in an HTML e-mail, the picture must reside on a web server or other web service like SkyDrive. Then you use the INCLUDE PICTURE field and paste (or type) the full hyperlink of the picture into the field as the file name.
Then, when you send the Word document as HTML, the link refers to the picture on the web server and displays in the other person's email message.