What is the recommendation about the security setting in OE relative to "block images and other external content in HTML mail"? Is this a reasonable security setting to leave in place?
What is the recommendation about the security setting in OE relative to "block images and other external content in HTML mail"? Is this a reasonable security setting to leave in place?

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It is a reasonable setting. External content can be dangerous. But, I think it depends on the user. If a user is experienced, careful and understands the risks then a more relaxed setting may be appropriate.
Joe
If you don't get any spam, you probably could save a few steps by enabling images. I think this setting is more about defeating "web bugs" than it is about security. Most security features are tied into setting mail to open in the "Restricted Zone" (where it should not be possible for ActiveX controls, JavaScript, and various other tools of potential mischief) to run.