Solution 1:

You might find inspiration from ScreenshotMe.

Basically you need different parts:

  • something that takes the image out of the clipboard and uploads it to the web: this could be a java applet, flash or firefox extensions. Flash or Java would have the advantage of being cross browser
  • then you use the <canvas> tag to display the image once it has been uploaded (use explorercanvas to bring canvas to Internet Explorer)

As I pointed out in my comment, Google is discontinuing gears in favor of HTML5, have a look at 7 User Interaction - HTML 5.

EDIT:

HTML5 when implemented is supposed to interact with the system's clipboard. I imagine the following scenario would work:

  • paste the image data from clipboard to canvas
  • get the canvas pixel data back as an image using toDataURL(): see Canvas2Image
  • upload the image to server when submitting: see Saving canvas image with PHP

Until HTML5 copy/paste drag&drop is implemented, you'll have to rely on Flash or a (signed) Java applet to interact with the clipboard.

Solution 2:

You could look into drag & drop upload with Google Gears.

Solution 3:

I see this is an old thread, but in case anyone is still looking for something like this (as was I), I came across a product called textbox.io tonight from a company called Ephox (looks like they bought out TinyMCE as well).

Anyway, this is the first, if not only, javascript/HTML5 editor I've found that successfully pastes images from word using a proprietary plugin they call PowerPaste. Upon the initial paste, it prompts to hit paste again in order to import the images. Worked like a charm - only problem I had was that it's hellishly expensive for a startup like the one I'm involved in at $500+ per month (±R6,650+ per month in ZAR), which prices it out of our options unfortunately :(