RE: Stationery

 I can't answer the first part of your question, but:

> Also will <a href="C:\Test"></a> work if my image file is in 
> C:\Test folder? 

No because it will try to find the image in the C:\Test folder on the
recipient's machine, not on yours. You either have to embed the image in
the email as Chip demonstrated or retrieve it from a web address on your
own server as you previously asked Chip:
 
> 1. Is it implied that the file "bgimage.jpg" is residing in the 
> root of http://www.w3schools.com website?

Change http://www.w3schools.com to a location on your own website where
the image resides (assuming you have one). That's why it's easier to
embed the image in the email.

-- 
Regards
       John