Embedded image moved to file: abc.jpg

[Paparazzi]

I've got a friend who sends me mail with pictures. The problem is
that all his mails have the message "Embedded image moved to file:
abc.jpg" and all the pictures are moved to to the bottom of my mail.

While I get mails with pictures from others too and they have the same
problem, I have an option in those mails saying "Display images
below". For this particular friend, I get no such option :(

I removed his address from my contact list and added it again, but
with no luck! Can someone help me with this???

Thanks & Cheers