Embedded images do not display at all in migrated messages when using Notes Migrator, despite using the rewritertf ini parameter.
This issue can be caused due to the version of Notes Client present on the Notes Migrator machine.
Issue fixed in 126.96.36.199. The latest version of Notes Migrator for Exchange can be downlaoded at http://support.quest.com/Search/SearchDownloads.aspx
Typically, using the rewritertf=0 setting in the ini file will resolve the issue and allow embedded messages to display in some fashion (images may appear grainy or in b/w).
However, with certain versions of the Notes Client, the images do not appear no matter what RTF converter used.
We have the best results with Notes Client 8.5.2