Gmail now lets us insert images into our email

Gmail added a new feature, Inserting images, to its Labs, a place for testing out ideas. You can now place images into your email rather than attaching them. You first need to enable this feature in your Gmail or Google for Apps mail settings..

1. Click on the Settings link in the Gmail menu, along the upper right of the web page.
2. Next click on the Labs link.
3. Scroll down close to the bottom of the web page to locate the Inserting Images feature.
4. Click on the Enable radio button.
5. Click on the Save Changes button.

You can now embed images in your emails.

A new control for images has been added to your Compose Mail toolbar.

You can click on the control to add images from your computer or from a web address (URL).