Ok, how do I do bold, italics etc.

I want to have pictures in the e-mail (not as attachments) - can I do that?

Also can I install gmail on Outlook? I can install Hotmail accounts easily on Outlook it doesn't seem to work with Gmail. Help!

In Gmail, go to Settings > Foward and Pop in order to get Gmail to work with Outlook.

I don't know about sending rich text email, though. Maybe HTML tags like <b> and <i> work, but I'm not sure.