more reason not to use microsoft products
HERE
Outlook is the big version of Outlook Express. OE is free and not as powerful, Outlook comes with server and office software i believe. I believe they both have pretty much the same vulnerabilities as far as viruses go.
Pegasus looks 'ugly' to a lot of people but it is just another email program. Theres no doubt Outlook and OE have nicer graphics, it depends if you think thats more importatn really

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As for viewing graphics - this is entirely down to what you've told windows to do with your files i.e. if GIF files open in Internet Explorer its because it was a default or at some point you told windows to use that. So if theres a problem with files opening its generally because they are being told with something you dont have anymore. To fix this, find a file of the same type - right click on it (you may have to hold down SHIFT first) and select OPEN WITH and select the program you want to open it with.