The attached XML is an email action you can paste in to an IDM rule that will retrieve the photo (or any other base64 encoded attribute from eDirectory) and attach it to an email. In this example, we send an email out when someone is terminated with an inline image of that person. (See attachments for a screen shot of a sample.)
Some notes about using this XML…
Disclaimer: As with everything else at NetIQ Cool Solutions, this content is definitely not supported by NetIQ, so Customer Support will not be able to help you if it has any adverse effect on your environment. It just worked for at least one person, and perhaps it will be useful for you too. Be sure to test in a non-production environment.