Using GMail Labs amazing features, now you can add the long waited feature of Gmail adding images in text but not as attachment. This feature could also be used previously but by use of copy and pasting, butt now GMail Labs is offering this feature directly. Moreover, I've also experimented adding some animated Images in text to an E-mail, and it worked.

• To Enable In line Images in Gmail go to Labs Setting page after signing into your GMail Account.
• Then check out for a Lab feature named as Inserting Images
  
  
  
• Click Enable to Enable the feature.

Now just move on to Compose Mail in GMail there you will find the Insert Image option just after Emoticons Option.

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