DotNetOpenMail

Web I read the email sent to a web email interface such as horde or att mail the inline images are show correctly, but when I down load emails to Outlook or OE the inline images location is displayed with the disconected X box and the image is attached as an attachment.

The wierd thing is if I forward this email message from my horde email reader to the OE or Outlook account the email is displayed correctly.

I was thinking that maybe the localhost SMTP is not parsing the Multipart document correctly?

I am also having issues using an authenticated smtp passing authentication. I pass it as follows:
server.SmtpAuthToken = new DotNetOpenMail.SmtpAuth.SmtpAuthToken("emailname@server.com", "password");

mailmsg.Send(new DotNetOpenMail.SmtpServer(ConfigurationManager.AppSettings["MailHost"]));


What is the server.SmtpAuthToken.Negotiate method used for and can you give an example of its use.