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Originally Posted by danielf
I'm interested in how it works as well.
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Just tried it and it uses the oldest trick in the book that some advertisers use to check that you are reading their spam that they send you. It uses a little 1x1 clear pixel that is embedded into the HTML of the email as an image with a unique reference code.
When the person opens up the email, the image is downloaded and as it is a tiny pixel nobody notices it. However if you are offline or if you have activated Outlook's image blocking then a big red cross will appear in your email and they will not be able to track it.
As the reference is unique the server will be able to detect it when it is read.