Tony,
I'm on a Win 7 laptop and IE9 at the mo.
I am getting the same message as your OP.
A workround (if the Snipping Tool doesn't float your boat - did you see what I did, there?)
Right click the pic, and select email picture. I did that and opened up my email prog and the pic is there as an attachment.
...or B) do the Snipping Tool...