Recently when using Mac Mail and sending an image, I noticed the picture preview no longer works when I send or receive emails with images in them. Instead, I only see the JPEG icon. Also of note, the size of the images I send (either via iPhoto or simply dragging from the desktop to the email) are automatically downsized as well.

Does anyone have any ideas? The people at the Apple store were stumped. None of the Mail preferences seem to cover this. I was thinking of trashing the Mail program's preferences in the Utility folder and then restarting the program. A good idea?

I am open to suggestions. Thanks!