We have found an problem with image URLs that have spaces in the URL. This may cause the Mail Application to crash on iPhones running 3.0 or later. It appears that any image url in html sent to the Mail app will cause it to crash. (spaces in other html like anchors etc. does not appear to have the same issue).
Solution or Workaround is:
a) When naming your images, make sure you do not put spaces eg. "my picture.jpg" should be "mypicture.jpg", "my_picture.jpg" or "my-picture.jpg" when you upload your picture to the website that is hosting your image.
b) If the website hosting your image is adding spaces to the url or you wish to continue using the image that has spaces anyway, we suggest you create a tiny url by going to http://www.tinyurl.com. They will give you a shortened URL that maps to your url.