Outlook 2010 not displaying images

Upgraded our MDs Outlook to 2010 and now now embedded jpg images etc that are sent to him displays.
I have tried the following without much luck:
1. Set the Automatic download option to download automatically
2. Made sure that show image placeholder is unticked
I am stumped! Any help?

Hi,
Thank you for contacting Outlook IT Pro Discussions Services. 
From your description, I understand that 
the embed jpg file cannot be shown in Outlook 2010. You have tried to check the Automatic download options and make sure that show image place holder is unchecked. If there is any misunderstanding, please feel free to let me know.
Based on the current situation, this issue may occur as some settings on the computer are not proper. Let’s try the steps below
to change the settings:
===============
1.      
Start,
Run (or Find in Vista) and type regedit and click okay.
2.      
Go down the list on the left hand side of the Registry Editor screen to
HKEY_CURRENT_USER \Software\Microsoft\Office\14.0\Outlook\Security, and finally highlight
OutlookSecureTempFolder.
3.      
On the right hand side of the screen you will see 
%USERPROFILE%\Local Settings\Temporary Internet Files\OLK3D\
Note the %USERPROFILE% may be the user’s name instead.
4.      
Highlight and delete %USERPROFILE%\Local Settings\Temporary Internet Files\OLK3D\
Please take your time to try the suggestions and let me know the results at your earliest convenience. If anything is unclear or if
there is anything I can do for you, please feel free to let me know.
Best Regards,
Sally Tang

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