Why doesn't the background appear in outlook 2007?

Outlook 2007 and possibly other email clients will NOT display a background image – this ONLY effects the background image and there is nothing you can do to resolve this as it’s Microsoft’s program and they chose to make it this way. The email template however will display everything but the background image (graceful degrading) – you should simply ensure that the background color of the body (already done in the downloadable files and set as ##ebece2) matches the table to produce a flawless experience.