I was using display:block on my images to eliminate that extra padding given in Gmail/Hotmail/Yahoo, but it wasn't working.
All my tests were going to Outlook 2007, then being forwarded to Gmail, et. al. The display:block fix wasn't working at all. So instead, I sent the email directly to Gmail (and the rest) and found out the email renders perfectly.
So, to my question...Does the display:block style get stripped when forwarded from Outlook? Is there a way around this so that when forwarded, the layout is maintained?
As far as I know there isn't a way to control what Outlook does to your code when forwarding, we've seen it cause all kinds of problems with formatting - which is one of the many reasons we recommend using the Forward to a Friend feature - this will send a fresh version of the code, and in the case of actual sends will send a generic version which means the recipient can't accidentally unsubscribe you or cause other strange statistics on your subscriber history (location, opens, links, etc).