1) sending an email from outlook to Hotmail works fine
2) outlook is already configured to connect to exchange in exchange mode - what other way would I connect it? pop3? but what would be the point of having exchange if connecting that way
Problem must be with office 365 in some way - as this is same version of outlook I used with my 1&1 exchange server and emails with photos etc worked fine, only thing that has changed is I send via office365 exchange now rather than 1&1
Think easiest thing for me to do is cancel office365 and go back to 1&1 - despite 1&1 support being poor at least they got problems sorted - and I have a business to run and need to be able to rely on the service sending emails in the format I want