How to insert image inline, in email composed with OWA?

When I am composing an email message in OWA 8.1.359.2, how do I insert an image in the body of the email, inline with text (not attachment)?

SOLUTION to copy and paste!! (Via Ctrl+C & Ctrl+V) (ok so its a good idea to have Exchange 2007 SP1 Rollup 7 pre-installed)

FROM inside OWA (exchange 2007 - I have sp3 on my exchange servers' servers) go to options and email security and then install the Outlook web access s/mime control program works in XP and Windows 7 x64 workstation. after install click save (probably does not but it does not hurt)

go back to new mail and you can now paste stuff off the clipboard.

This will also enable sending the previous mails as an attachment in a new mail (via drag & drop)

In order to insert an image into the body of an email, you will have to declare the message MIME type to be text/html. Then, your attachment image as image/[IMAGE TYPE] (depending on the type of file) with the added header field of Content-Disposition: attachment; filename=[IMAGE FILENAME], and then refer to the image using the relative filename in the HTML: <img src="[IMAGE FILENAME]" />

Save your image anywhere on your PC, then right click and say Open with > Internet Explorer. Click and drag image into message window and voila. Hope that helps! :)

If you are not using Internet Explorer, you can use the "Insert image" button in the first line of tools of the new message window.

In my setup, it is the third icon from the left, after the "send" link. It's icon is the small mountain & sun.