Try attaching the image file instead of dragging it there. (Click the Attach button above the e-mail)

Thanks - I did try uploading - still no go.

Even though you won't see the uploaded image in your e-mail, the recipient will see it when opening your message.

I sent it to myself and it didn't open - is that because it was me? or should I test it with someone else? thanks again for your help...

You can try sending it to me, and I'll reply back. My e-mail address is firefox (at sign) zzxc.net