Kevlarr

I found the solution.

My PDA contacts are stored in a separate contacts file i.e. not the Global Address List. What I did was I removed my personal contacts folder in the Contacts Options list:

Contacts -> Click the book icon -> Tool -> Options -> In the last dialog box "When sending mail, check names using these address list in the following order". I removed my personal contacts folder from the list, and leave only my Global Address List. And that's it.

Now my PDA contacts can have the contact photos, and it will still sync my contacts (with photos) to my personal contacts folder, but the contact photos will not appear in the email message header.

Finally after weeks of research and experimeting, it is finally solved. If anyone facing similar issue, hope this helps.