Tell the sender to send them that way.

You can go to the View menu and check Display Attachments Inline to make them appear to be Inserted.

Sender has sent them embedded and the Display Attachments Inline is checked. Any other suggestions ?

Are they showing as attachments in the bottom status bar?

Yes, so I take it they were sent as attachments and not embedded ? Thunderbird is new to me and I'm trying to figure out all of it's features. I have been using Incredimail since day one but it has become so annoying.

If they show as attached that is how they were they were sent. If they are attached jpgs they should display if you have that option checked.