Resize Email pictures in Outlook - Office 2007?

[jonesnewton]

Hi,
I used to be able to select pictures in Microsoft Office Picture Manager, click E-Mail and select what size I wanted, it would then put them into a Outlook mail ready to be sent.
The problem now is it does not do this and I cannot find out why?
I can add the pictures manually via Outllook, but then they are too big, unless I edit each picture seperately

I dont know why the EMAIL icon still seems to be working in Explorer when resizing, but where do they go?? Maybe a setting has changed, if so where?

I have found a couple of workarounds, but they involve alot of work.

Any ideas??