You need to make encode the binary file into text, either with uuencode or (preferably) mimencode. You cannot send binary data directly through email.
Inserting a picture into the "body" of the email is the same as creating a MIME multi-part message. Some mailers will show the picture in-line. Others will just show it as an attachment. Check out the faq for info on how to create attachments, etc.
http://droflet.net/unix_dot_com_faq.html
Also search the board or the web for info on mimencode.
Also see my reply to recent thread titled "Using MIME to send html files". You need to use the same concept, except one of your sections will contain the mimencoded data (with appropriate Content-type)