try this:
$Mail_header = "Content-type: text/html\n";
$Mail_header .="From:$senders_name<$email>\n";
$body=("<body>Hello<p><img src='http://www.phpbuilder.com/images/new-logo.gif' border='10'/></p>Goodbye</body>");
mail("$email","html email",$body,$Mail_header);
you can refernce images as absolute references to a web server but not attach them to the actual email. Someone who tries to read your email when they aren't connected will have to connect before they can see the images.
Sorry Craig if it's similar to yours