Are you not seeing pictures in Internet Explorer, but instead getting a red X? It could be due to a number of factors, including “Show Pictures” not checked in Internet Options, or sloppy XHTML coding (make sure to close your tags). But this was not the case for me. Everything was working perfectly in Mozilla (which I use primarily), but I was just double checking in other browsers. Here is the reason:
Interesting. I could not find that answer anywhere on the net, but decided to start back at the beginning in Adobe Photoshop CS4. Reopened the JPEG (seen below) and noticed that it was still in the CMYK color model because I was working on business card designs for commercial print.
Be sure to transform your images back into RGB if they will be viewed on the net or in IE7 (or probably any version of I.E. for that matter). This is also important if there is the possibility that your client uses Internet Explorer to preview images.
Click for larger view with subtle details.