Infact when today morning i was sending a mail to one of the support group about a problem and tried my level best to insert a screenshot in the mail, i cursed Gmail so much for not having this feature in Gmail and here i am after 6 hours posting about the same thing and not the lack of it but telling you about Gmail's latest feature...
Dream come true for me!!!
Here's what the Gmail Blog Reports :-
Well, it's about time. You no longer have to use workarounds to put images into your messages or attach images when you really want to inline them. Just turn on "Inserting images" from the Labs tab under Settings, and you'll see a new toolbar icon like this:
Make sure you're in rich formatting mode, or it won't show up. Click the little image icon, and you can insert images in two ways: by uploading image files from your computer or providing image URLs.
Keep in mind that Gmail doesn't show URL-based images in messages by default to protect you from spammers, so if you're sending mail to other Gmail users, they'll still have to click "Display images below" or "Always display images from ..." to see images you embed.