Hi! I was having this problem too and have found THE SOLUTION! Well this is
what I did and it worked.

All you have to do is click on "Switch to Classic" on the bottom left
corner, this will switch you back to classic version of Hotmail Live. Then
you go to send an e-mail (you won't have to actually send one) and try to
upload pictures to it. IE7 WILL let you install the ActiveX Control using
the classic version here through the Information Bar at the top when you try
to upload the photos. Then you can switch back to Full Mode and the photo
upload tool should continue to work. I discovered this this morning!

Good Luck!

"tlamberth" wrote:

> there has been a previous question regarding this but it was not helpful. My
> question is regarding the BLOCK of ActiveX Control by IE7 when trying to
> upload picture attatchments. When it is blocked there is no option to trust
> the source and proceed with the download. The information bar just says "IE
> has blocked this site from using an ActiveX control in an unsafe manner. As
> a result, this page may not display correctly." When i click on it it just
> says "What's the risk?" and "More Informantion" and gives me no option to
> proceed further.
>
> How can i prevent this "hard" block from occuring or how do i get around it?
> I like the preventive features fo IE7 but would like to be able to attatch
> pictures in email from a very reputable source such as Hotmail. Thanks in
> advance!