I havn't used Trillian myself for years, because I havn't used Windows for years. So I have next to no idea. Regarding pictures, why would you put a picture in a message on MSN? Wouldn't you send them the picture as a file? I have used instant messaging since 2001, and never once have I seen people dumping pictures in messages, and frankly I'd find it annoying if they did.
Hehe, Microsoft is famous for designing appallingly crappy software. If you wanna try some other MSN clients, have a look at Trillian, you can download it here: http://www.ceruleanstudios.com/
There's a "Basic" version that doesn't cost anything.