How does the paste image from clipboard functionality work in Gmail and Google Chrome 12+?

I noticed a blog post from Google that mentions the ability to paste images directly from the clipboard into a Gmail message if you're using the latest version of Chrome. I tried this with my version of Chrome (12.0.742.91 beta-m) and it works great using control keys or the context menu. From that behavior I need to assume that the latest version of webkit used in Chrome is able to deal with imag

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