My problem has been solved - Thank to Jim's answer to the post from Kevin
'saving in jpeg insteadof bitmap format.

Clear out your Temporary Internet Files cache to start with.

Control Panel>Internet Options>General Tab.

Wouldn't hurt to then re-boot and empty your Windows\Temp folder and your
Documents and Settings\User\Local Settings\Temp folder.

Gord Dibben Excel MVP

I saw lot of answers posted about this and cache was not my problem and it
did not fix it.
This problem dogged me for awhile. I found a work around easily enough.
The problem is created when you install JAVA programs to win xp. When you
click any internet image it comes up to save as an untitled bitmap.
Do this instead, right click and choose> email  picture, choose keep
original size>when the letter comes up>drag the attachment to your desktop
or go ahead and mail it to yourself and then use save attachment.