A better way to do this is to use Campaigns. If you have time to switch the process, this would work well for you.

If you need to stick to Saved Search:If it’s the same image to all recipients, you can just hard code it into the Email section of the saved search.
If each customer gets a different image, then you could add a custom field to each customer record with the image, then use the search results, or ‘Single Record Results’ in the Email section, to customize your email.

I think I need to hardcode the image into the email of the saved search, but I am unsure how to do that exactly. I have the image url from the file cabinet but I wasn’t sure where to go from there. Everyone will get the same image, as it would be our Company Logo.

Edit your Saved Search, in the ‘Email’ tab, choose the ‘Customize Message’ subtab. Place the image url (with proper html) in the ‘Introduction” or Body fields.

We currently have this under Customize Message in our saved search, with the actual image URL. I still only receive a blank email message:

Am I missing something or am I doing this completely wrong? (Forgive me, HTML is not my strong suit)

Make sure that you have made the file in your File Cabinet ‘Available Without Login’.

I don’t think you want anything but the img tag, get rid of the other lines. Also, try putting the html in the Introduction section. If that doesn’t work, then try the Body section.