How is it possible to place jpeg photo files directly into the text box in an email without attaching them? I use mainly yahoo and hotmail and cannot find a way to do this so far.

I suggest get a Gmail account !

I create the email in word - insert the photos etc and then cut and paste into Yahoo.

Or use an email client. Piece of cake in MS Outlook.

I suggest thunderbird, myself i use the portable version which can be installed on your thumb drive and used on any pc.

Use Thunderbird, then you can simply "Insert" the photo in the text box.

windows live mail.

Use Thunderbird, then you can simply "Insert" the photo in the text box.

Or, simply drag-and-drop.

All most all email client softwares can satisfiy you. MS Outlook (express), thunderbird, Windows Live Mail,Becky, The bat!, etc.