Outlook Express 6 Insert Picture Problem

[almostfrugal]

I have followed the steps to insert a picture into an email to no avail. I have selected Rich Text (HTML) and Send Pictures with Message. When I click to insert a picture, I get the pop up window to browse for my picture file. I browse for a picture, enter 1 for border thickness, and click OK. All I get is a small, square, empty box--no picture. If I try to send the email, I get a pop up that says one or more of the pictures in this message could not be found and won't be sent. What am I doing wrong?