I send my newsletters out the way most do, with images inline, hosted from my website.

A great friend of mine says, "are you crazy" I cannot see the images. They are not there.

He does not seem to get that this is normal, that you need to download the images.

Is it practical to send a newsletter to 10,000 people with jpegs as attachments?

I would not even know how to create it. When you attach a jpegs it just sort of goes anywhere right?