Back in August, the Hotmail team temporarily removed adding photos to the body of Windows Live Hotmail messages due to a security issue in the upload tool. They have been building an updated version of the tool and now you can add Photos again! Yes, that’s right, the Tool is back!

Instead of adding pictures as attachments to your Hotmail messages by clicking Attach and then File and then selecting the pictures you would like to include, Hotmail brings you a tool so you can more efficiently select and add multiple photos to a Hotmail message in Internet Explorer in a couple clicks: select Attach and then Photo.

Source: Adding photos to Hotmail messages – an anticipated return - Windows Live