This should be a fairly thorough way of fixing the problem and it will take care of any major IE problems u have.

1) Install/update Ad-aware and remove all spyware (spyware can sometimes corrupt IE files)

2) Open IE properties and Restore Defaults on the Advanced tab

3) Go into your 'control panel' and then 'add/remove programs' click Microsoft Internet Explorer and then 'Remove' (If Internet explorer isn't in your add/remove goto step 5) It will give you a selection box and choose repair. After clicking OK it will go through a repair process and fix any corrupted or missing files.

4) Restart computer and then test using a reliable webpage

5) If there is still problem make sure that you have the latest version of Internet Explorer http://www.microsoft.com/windows/ie/default.asp

6) If their still is a problem then there may be some sort of third-party software that is causing the .jpg problem. Dig through add/remove and uninstall anything that is not used.

GOOD LUCK