Hotmail has launched an image filter, which applies to all e-mail sent by people not on your contacts list. The filter prevents images embedded in e-mail loading until you have had chance to review that mail. Embedded images in junk e-mail can return information to the sender, letting them know that your e-mail address is active. Turning the image filter on prevents this from happening.
To activate the Image Filter:
Sign in to Hotmail and click Options.
On the left-hand column, select Mail.
From the list presented select Mail Display Settings.
Under Display Internet Images, select Remove images until messages are reviewed.