hi,
try this, it is working fine.
for inline attachment.................................
 attachment :content_type => "application/html",
                   :filename     => filename,
                  :body         => File.read(filename)

    @cid='[email protected]'
    image_path = "#{RAILS_ROOT}/public/images/logo.jpg"
    f=File.open(image_path,'rb')
    inline_attachment :content_type => "image/jpg",
                      :body => f.read,
                      :filename => "logo.jpg",
                      :cid => '<#...@cid}>'
   body[:cid] = @cid

for display image in email
try this
<img src="cid:#{@cid}" />

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