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.
