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Email Template/ HTML Issue with Letterhead



I have created a letterhead and use that letterhead in creating an HTML Email template. When I send a Test eemail internally  the HTML graphic does NOT appear in the email. However, when previewing, I am able to see it. 


I have followed each step meticulously, not sure what other options I have? 


Any recommendations or assistance is greatly appreciated. 


Thanks in advance! 


*Note*  I don't see this being an Outlook issue for I recieve HTML emails daily with no issue (as I'm sure you do to) 

*Note* the Letterhead image/banner is a JPEG 






Where is the JPEG hosted? Is it in your org? If so, make sure the settings allow for it to be viewed publicly.