I have been using Windows Live Mail quite abit lately since I discovered its excellent GMail support and easy configuration.
Anyway, one problem I did have with it is the way it handles images. It considers all images in HTML email to be a threat and blocks the images until you allow the images on individual mail or add the send to a Safe Senders list.
However if you are like me and just want the images to be displayed for all messages, this is how you do that.
Go to Tools then select Security Options.
Then click the Security tab, and untick “Block images and other external content in HTML email”