In response to problem one:
In my experience pictures appearing as squares with red x's have two possible causes:
Possibility 1) The path for the picture in incorrect or cannot be found. For example, I created a hyperlink to a picture on a website for my profile page at the university. The website changed its name, thus the URL was no longer the same. Consequently, the picture on my profile page disappeared and was replaced with a square with a red x. The problem was solved when I updated the URL.
Possibility 2) You have images disabled in your e-mail. Consequently, all images will appear as squares with red x's.