EmailMerge does not seem to be sending out HTML e-mails properly. Users are receiving plain text e-mails with pictures as attachments.

* Start Outlook and go to your Inbox 
* Go to Standss Outlook Addins -> select EmailMerge -> More ->  select Settings... 
* On the EmailMerge Settings Tab, click on the HTML Routine tab 
* Choose method B from the list (or choose A if you had previously chosen B). Method A works best on most computers -> Click OK. 
* Run the EmailMerge Wizard again and see if this solve.