How To Add Embedded Picture/Image To Gmail:
Google has finally added an “Insert Image” button in Gmail  meaning you can embed images in email messages directly without having to use file attachments or complex copy-paste.
This image button is not available in the default interface of Gmail.But you can enable this Image Feature and use it. You can either upload new images from the hard drive or embed images that already exists on other websites.
Steps To Add Picture in Gmail:
1.Go to Settings –> Labs, you’ll see many different extensions to Gmail that are available.Just scroll down to near the bottom, where you’ll find:
2.Choose “Enable” then scroll to the very bottom and click on “Save Changes”. Now you’ve added a new capability to your Gmail interface.
3.Here’s a message I’m writing and the cursor is poised over the tiny picture icon, as you can see:
4.When you click on it, a window pops up.
5.You can reference an image that’s already online (useful if you want to use images from, say, Flickr or Photobucket).
OR
6.Click on “Choose File” and you’ll get a regular, standard old file selection window.
7.Browse and set the Image you wish to embed in your Gmail.
8.Notice that Gmail gives you a tiny little toolbar letting you resize the image or even remove it. That toolbar will vanish when the image isn’t selected, which is nice.
9.Finally compose your mail and press “Send”.
Enjoy mailing your Friends!!!
