To setup Outlook Signature:

Go to tools -> options

Mail format -> Signatures

Click on New

Name your signatures and click on Next

Enter in text you want in the box.
Click Finished -> Ok -> Ok

Outlook Express:

To set a signature under Windows live or Outlook express press on
Tools -> Options ->

n.b:If you do not see tools press down on Atl on keyboard
Then click on Signature Tab

Click on New and enter in signature or modify text.

Click on Add signature to all outgoing messages and click OK
To setup images you need to setup a html file using word, dreamweaver and select file Browse to file and enter.