I have a Yahoo mail account and have just sent to my gmail account a picture inbedded in the main body. Very simple.
Open a flickr account,yahoo owns them anyway so you can use the same logon as your email account. Uplaoad your photos then right click/copy the photo you want, then paste image into your email. Sorted.
Glad it seems to have worked for you - the way I described is just 'one' way, which in fact I only rarely use. My normal method is just to click on Insert Picture, within my email program - this brings up a small window showing My Pictures, (I also have the option to add Attachment, as normal) when I do my mails, but I am using Incredimail!
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