How can I embed a local image in gmail without using an external link?

Question

In Gmail, I can only cut and paste a picture from the web into the mail, but even then when it arrives in someone's Thunderbird, for instance, they have to click "show remote content" to see it embedded.

I can attach a local image to the email, but I want it embedded within the text of the mail.

Googling an answer tells me that I should "Click the Insert Image button in the message's formatting toolbar." but in the latest version of Gmail there is no "insert image button":

How can I embed a local image from my hard drive into a Gmail e-mail so that e.g. Thunderbird can see it embedded without clicking a "load remote content" button?

Answer 1

Google in their infinite wisdom have made the feature an option through the Gmail Labs. This support page details the procedure to enable it:

1. Click the gear icon in the upper right, then select Settings.
2. Select the Labs tab.
3. Select the 'Enable' button next to 'Inserting images'.
4. Click Save.
5. When you're composing a message, you'll see an icon in the Gmail toolbar, between the "Insert emoticon" (smiley face) and "Link" buttons. Click that to insert an image.

You can add either a URL or a file you've saved to your computer - however only adding from your computer will attach the file to the email.