If you ask for advice, feel free to disregard legitimate advice you do not feel is pertinent. It wasn't only "legal" advice, it was practical advice.
So go buy a real web development application. Or download and install the now no-longer being developed Expression Web. EW is as fully-featured as DW of a couple versions back. Your images will need to be hosted on your own domain (or elsewhere on the web) for HTML emails to work. No embedding. Or download the trial of the application I mentioned and give it a try. Make the assets in PS and or whatever Xara application you have.
Here's some more advice you will not like: This isn't going to work like you think it is going to in your recipients' email client if you try to embed the images. It isn't straight-forward.
Good luck.
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