Losing images in Reply to a Mail message - But Forwarding works fine

When I Reply to a message I loose and images in the original message (including those in my original signature lines. Instead of the image I get <pastedGraphic.tiff> or <image001.png> or <ATT00108.gif>. Any new images (from my new signature lines) are ok.

If I Forward a message all these original images are intact and get forwarded, so the problem is in the Reply function.

Any Ideas.