the_excerpt tag stripping images from posts

Hello

When I remove the <?php the_content(__(‘(more…)’)); ?> tag and add <?php the_excerpt(); ?> to my index.php file, it displays the short version of the post, but when I click the link to the full post no images appear :o( I am using the classic 1.5 theme

Is there an option or some code I need to add/edit?

Many thanks