Here is a previous post of mine on this issue:

Newsgroups: microsoft.public.access.gettingstarted
From: "Stephen Lebans"
<ForEmailGotoMy.WebSite.-WWWdotlebansdot...@linvalid.com>
Date: Tue, 23 Nov 2004 20:18:36 -0400
Local: Tues, Nov 23 2004 8:18 pm
Subject: Re: Embedded bitmap images appear as "Package" instead of "Bitmap
Imag
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You have installed software that has changed which program is registered
to display Bitmap images.  Prior to your "break" when you double clicked
on the Image on the Access form which program was started up?

Whatever the original program was that served as the OLE Server to
insert the Bitmaps as OLE Objects in your table needs to be
reestablished in the registry as the registered program to display
Bitmap files.

Here is  previous post of mine on this subject. Just follow the
directions.

Message 4 in thread
From: Stephen Lebans
(ForEmailGotoMy.WebSite.-WWWdotlebansdot...@linvalid.com)
Subject: Re: Inserting picture into an access form

View this article only
Newsgroups: microsoft.public.access.activexcontrol
Date: 2004-11-12 19:43:08 PST

In this case the OLE server is simply an Image/paint program that:
1) Can function as an OLE Image server
2) Is registered to handle the specific Image file types you want to
insert into the OLE obect field.

In most cases, MS Photo Editor is used as the OLE Server program. It
must though, be setup as the default/registered handler for the image
file types in question. MS Photo Editor is no longer included with
Office 2003. YOu will have to find you Office XP or WIn2K disks and
install MS Photo Editor only!

The simplest method to associate a program with a specific file
extension(BMP,JPG,etc.) is to:
1) Open a folder containing the Images you want to insert.
2) Right click on a file while holding down the SHift key.
3) From the popup menu select "Open With".
4) Scroll down the Open With Dialog window until you find MS Photo
Editor and select it.
5) Check the Always use this program to open this file type CheckBox
control.
6) Click OK.

Repeat the steps once for each different type of Image file you want to
embed in your table.

That is your problem. IE is not an OLE Server. You must associate the image
files with a registered OLE Server. Try following Stephen Lebans
instructions.