Google Mail Labs: Inserting images

I just enabled one of Google Mail Labs features. It’s “Inserting images” feature. What is it?

Allows you to insert images into a message body. You can upload and insert image files in your computer, or insert images by URLs. This lab will not work if you have offline enabled.

If you’re using Google Mail — I’m using Google Apps for domain, anyway — you can visit Google Labs page directly from your mail dashboard. The menu is at the upper right. Scroll down there to choose which labs features you want to activate.
Now, if you write an email in Rich Text format, you should see a new icon there. Click on the icon and you can choose the image you want to insert in your email. You can upload it first, or using a remote image address.
But, why did I enable this feature? For a simple reason: it helps me dealing with Posterous. Creating a new post by email to my Posterous page should be easier now.