Whether you use html or embed the image you can't guarantee the recipient will see it as they have control of their client and the ability to restrict images. Additionally the mail could be filtered either by the ISP or Client based on spam rules for content
As stated above, email is a little tricky and each isp filters it differently. The main thing to do is to include the appropriate headers and smtp information. I use a php mailer class and it works for yahoo, hotmail, and gmail(they will disable the image by default but the client can easily enable it). It allows me to send both an html version and a plain text version of the email. You may not be familiar with php but, you're going to have to use some sort of server script to send the mail. As for embedding images, I've found that you're much more likely to get your html in the email to work if you don't use quotes. What I mean is that where you would normally put <img src="http://..." /> skip the quotes and put <img src=http://.. />Here is a good page to look over regarding good html email principals, css in an email, and how the big mail servers handle it.
basically this is i want to do. i want to start a Email marketing campaign. so i was hoping to make html for the products and i can send that html page. just like a news letter to the customers. any idea how to do it