The best way to send images across is to send them as inline in email message. Gmail provide the facility to add images inline with messages using the rich formatting setting in the compose window.
If you are using Google Chrome web browser, you do not have through the pain to expand the rich formatting tab, clicking on insert image and browse through files to upload it, as you do when using other browser like Firefox.
With Google Chrome, you can simply drag and drop images into the messages. Drag and drop feature works only with Chrome browser.

To insert image into message just drag that image from your computer into the message field of the Gmail.
If you want to attach any file as attachment, simply drag and drop it in the attachment section of compose email.
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I am unable to attach an image (jpeg, tiff, etc.) or Document (.doc, pdf, etc.) file to my yahoo email. A dialog box pops up (like normal) to allow me to pick which file I want to attach. When I select the file (in this case an image) the dialog box goes away (like normal). However, the file is not attach. I tried this several time with different files ending the same result, no file attached. I tried deleting my history and I also tried turning off my virus scan but I’m still having a problem. I can attach other files (i.e.”.max”) but that is sometimes temperamental.
I checked my sent items to see when was the last time I was able to send in email with attachment and it was about three weeks ago (around the 13th of Nov). I can however, forward an email that has an attachment. But, if I try to download that attachment and reattach that same file to another email I still end up with no luck.
Any help would be much appreciated.