Outlook 2007 will display images in a smaller size, even if the original image has larger dimensions. This happens because Outlook does not interpret the size of the image from the style attribute, so Outlook will only resize the image if the width and height attributes are given.

We have recently updated our Email Wizard to automatically include these two attributes, if you have resized the image using the drag functionality.

If you are using Custom HTML, we recommend using the width and height attribute for your images -
<img src='http://www.mysite.com/logo.gif' height=80 width=400 border=0 />, for example - to ensure your image appears correctly in Outlook 2007.