The URL to our image should be absolute, including the full path to the file as hosted on your web site.
e.g:
<img src="http://example.com/mail/images/news07-03-24-image1.jpg">
Looking at your example it looks like you are simply including a link to your site, not a link to the image hosted on your site.
If you want the image to be clickable, so users reach your site, you would do something like this:
<a href="http://example.com"><img src="http://example.com/mail/images/news07-03-24-image1.jpg" border="0"></a>
Please let me know if I can be of further assistance!
Regards