This particular error message occurred when you try to email a picture through Microsoft Office Picture Manager. The program was trying to send it through the "default email program" which was supposed to be Outlook 2003 in this case.
How can you fix this?
You must make the change in your Outlook or email program. In this case we needed to open Outlook 2003. From Outlook 2003's main window, go to Tools > Options; in the Options dialog that opened, click on the "Other" tab. Under General, check the Make Outlook the default program for E-mail, Contacts, and Calendar check box. Just to be sure, check all the other tabs such as mail setup and mail format and read them carefully. Change anything you suspect may cause the problem.
I found Word as the default email program in this case. Since Word is not an email program it would never work. If you see this or something similar remove the check from the box or boxes that are next to it. After that it should work. Try to remember any changes you make just in case you need to change them back for some reason.
The error message is a little deceiving. You would think the problem is in the program your running (In this case Microsoft Office Picture Manager). You MUST correct it in the default mail program you are running.
The computer I tested this on was running Windows 7 Home Premium and had Microsoft Office 2003 installed. No problems with any part of the computer were indicated and no viruses were detected.