I have taken the time to thoroughly review the threads regarding similar
users having this familiar problem. I receive e-mails from my father that
regularly have the red x place holder for an image that was supposed to be
embedded in the forwarded e-mail I received from him. We have gone into his
security settings and unchecked the box for "Do not allow attachments to be
saved or opened that could potentially be a virus", and I am still receiving
the place holder.

I truly don't believe this is on my end as receive embedded images from
other e-mails frequently. Please advise - thanks!