Why Outlook 2007 pasted images are larger than original?

I have been using Outlook 2007 for over a year with no image problems. Around September 1st, images that I paste into messages are enlarged in the messages.

1. This happends with WinSnap, the Vista Snipping Tool, or any jpeg pasted into the message


2. I tried jpegs with 96dpi settings w/o sucess


3. I tried different Outlook Format Picture ... and Size ... settings


4. Problem happens with both RTF and HTML messages


5. Attached images are ok

Something mysteriously changed and I cannot figure it out. I googled this to death without any success (others have the problem but there is no solution). This is driving me nuts because I snap screenshots all day long ("a picture is worth a thousand words").

Thanks in advance.

Answer

If Outlook is using Word as the editor check that you have not inadvertently set zoom to larger than 100%. If you have, it will continue to use that size.