Gmail Labs recently introduced a new features – “Insert Image Button”.
Insert Images Button
This feature when activated allow you to upload/insert images into email. Until now there wasn’t anyway to add images into your email from Gmail’s WYSIWYG editor.
To activate this feature, simple go to Gmail >> Settings >> Labs and look for Inserting images. You better use browsers search feature as Gmail labs is now have more than 20 features to choose from!
No Integration WIth Picasa
Only thing surprised me is missing integration with Picasa albums. Other Google services like Orkut supports complete integration with Picasa.
Why in Labs???
I hope such a basic feature will be added to Gmail when it will come out of beta. (Gmail is in beta for more than 5 years now!)
(via Official Gmail Blog)