have you clicked 'show images and enable links' in the e-mail window?
if you have and it still doesnt work.....
try going onto i.e, go to
www.aol.co.uk and use your screen name + password to sign in click on e-mail, chose an e-mail with a pictureattached and see if you can see it.. if you can:
Click start> control panel> add/remove programs> aol click change/remove
chose repair and then follow the on-screen instructions..
if you cant....
click tools (in I.E) internet options and delete temp. files and cookies