Go here for email signature creation instructions for Outlook 2007
1. Go to theTools menu and select "Options". The Options dialog will appear.
2. Click the "Mail Format" tab
3. Click the "Signatures" button at the bottom of the dialog box.
4. In the Create Signature dialog box, click "New".
5. Type a name for your new signature.
6. Click the "Next" button.
7. Right-click in the Signature text box.
8. Select Insert Image from the pop-up menu.
9. In the Picture dialog, click the Browse button.
10. In the Picture files dialog, navigate to the image file you would like to use.
11. Highlight the image file and click Open.
12. In the Picture dialog, click the OK button. Your image will appear.
13. Add any other text as needed.
14. Click the Finish button.
15. Click the OK button.
If your new signature doesn't appear, follow steps 1 and 2 and you will find your new signature in the pulldown menus at the bottom of the "Mail Format" dialog box.