I'm not exactly sure how hiding bullet points from me protects my privacy from the woman who could fire me on a whim, but I sure am glad Office 2003 is thinking of me... I guess. Oddly enough, though, allowing Outlook to download images still resulted in a bunch of image-not-found placeholders in the E-mail.
On closer inspection it looks like buggy Microsoft software is the culprit:
<img width=11 height=11 src=PicExportError alt="*">
Not sure what would cause that to be in the source HTML for this E-mail, but it's pretty funny.