I was able to open all pictures (.jpg) that came through my email account. About three weeks ago it began NOT letting me open my pictures and the error message I get is: there is another program using this program, please close all programs and try again. WEll, there are no other programs running. If I do a save as and save the attachments to my documents - they will open, but, why will they not open from my email?

Go into explorer/tools/file types and check the file association for jpeg. Give a person a fish, they eat for a day. Suggest they internet search and they learn a skill for a lifetime.
Doesn't seem like it's an association problem since the attachments open without issue - the answer likely lies within the parent application (OE, browser, etc) I'm not one of those who think Bill Gates is the devil. I simply suspect that if Microsoft ever met up with the devil, it wouldn't need an interpreter.
You need to delete your temporary files. Go to IE Tools then internet options - click on delete files in the temporary internet files section.
If you are using Outlook Express go to Tools/Security/is "Do not allow attachements to be saved etc" unticked ?
