This seems to be related to the main Outlook window only. If I open an email in its own window, everything is ok. The problem is that Outlook, in Terminal Server mode, auto sizes everything. So, no matter how I size the window, everything is scaled. I discovered that this morning. When I was viewing an email, I found out that I am always seeing the entire image (one which the user has included in his email) no matter if I resize the window or not. This is when I discovered that everything was resized (scaled) and this is what is causing all this. But, as strange as it gets, when opening an email in its own window, everything is ok
I wonder if there is a setting in regards to Outlook in Terminal Server for this.