This tip will let you insert images to your GMail’s message body and not as attachments. This also works on Google Apps-based email.
1. Click “Settings” on your main email page.
2. Click on the “Labs” tab.
3. Search for “Inserting Images” feature by Kent T. Tick/Select “Enable“.
4. Scroll down and click the “Save Changes” button.
When creating a new email, you’ll notice that there is a new tool on the palette beside the “Insert Emoticon” button. Click the “Insert Image” button to add an image from your computer or from a link to your message body.
Remember, that this is just an experimental feature. There’s no assurance that it will be working 100% all the time. Also, make sure that GMail Offline is enabled for this lab to work.