You need to be sending your forwarded mails as html/rich text. To do this enable the rich text editor in "Settings" - "Compose". (note: This is for AOL Webmail (http://webmail.aol.com). 

Update 2/12/2009: Since AOL Webmail had to disable the implementation of "AOL Pictures" (AOL Pictures has been discontinued) some of the cool features regarding pictures which were unique to AOL don't work no more. We're really sad about this, but are working on a different solution to bring this feature back to you as soon as possible.

In the meantime you have to use the "Attach" Button to attach pictures just like any other file. 

If you get an error message when sending pictures, please make sure that you don't have "pictures and attachments" blocked in your spam settings. You find this in webmail under "Settings" - "Spam Controls"

When forwarding mails with pictures please note, that AOL Webmail will not display the pictures inline, but they will be ATTACHED to your mail - just the way your received them. 

Feel free to send me a private message through Yedda if you have similar issues and the above does not help.

Follow these simple steps to do it yourself online.

1. Sign on to the AOL® service with the screen name whose password you wish to change, then go to AOL® Keyword: Password or through any browser go to http://password.aol.com and log in.

2. In the Answer: box, type the answer to your Account Security Question (ASQ), then click Continue.

3. Type your new password in both the boxes, then click Save.

A few things to note:

• If you have not set up an ASQ before, you can set one up during the password reset process. Select a question from the available options, type your answer in both the boxes, then click Submit.
• Your password must be 6-16 characters long. Strong passwords are a combination of upper and lower case letters, numbers, and special characters (e.g., @, #, &). Do not use common or easily guessed words in your password (e.g. first, last, or screen name).

This hasn't changed. You don't have the rich text editor enabled. When composing text and you don't have the rich text editor enabled, simply click on the link "enable rich text editor" which should appear in the upper right corner of the compose window. You can also go into "Settings" (the link next to the help link), go to "compose" there and enable the editor there.

To switch from an Inbox folder back to New and Old mail folders:

1a. If using AOL® 9.1, go to AOL® Keyword: Mailbox switch.

OR

1b. If you are signed-in to Webmail you can switch using this link:

http://inbox.aol.com/mail/changeMailboxStyle?style=auto

NOTE: You must be signed-in using your AOL® screen name and password.

2. Click the Switch to New/Old button.

3. Click the X button.

The changes will take effect when you restart the AOL® software or sign-off and sign-on again.

If you need to copy over mail received and/or your address book from another account to your AOL account, try AOL Easy Transfer.

We value your membership with the AOL® community, and we are sorry that you're considering canceling your account. It's our mission to build a service that lives up to the highest standards of the online community, and we hope you've enjoyed being an AOL member. Before you cancel, please take a moment to consider other options available to our members.

AOL now gives you the freedom to select from a variety of account options located at cancel.aol.com. You can enjoy the benefits of  a paid or free membership even if you decide to move to a high-speed connection or another service provider. 

If you still wish to cancel your membership, please visit cancel.aol.com. Located on the right of the page is the Frequently Asked Questions section and by selecting the link, "How do I cancel my paid member account or convert it to a free member account?", you will be able to action your account accordingly. Once again we appreciate your membership.

In Webmail you can turn off the "You've Got Mail" message by going into Settings and unchecking "Play a sound when new mail arrives" under the General section.

In AOL versions 9.0 and 9.1 you can disable the message by going into Mail Setting under the Mail menu.  Once there, click on the Advanced tab and then uncheck the “Play sound when new mail is delivered” setting.

In AOL Desktop click on the Help drop down menu in the upper right-hand corner and select Settings.  Under the Mail tab in the Notifications section you can change your settings as desired.