Yahoo has launched a photo service called PhotoMail that lets users insert up to 300 digital photographs into the body of an e-mail and store an unlimited numbers of photos on the Web.

The company will begin public beta testing Wednesday. PhotoMail can be downloaded from the Yahoo Mail Web site.

When the pictures are attached, they will appear as lower-resolution thumbnails in the body of the e-mail.

Users will also be able to change the size of the image, add borders, rotate it and even improve/enhance the image quality.

PhotoMail will also offer free unlimited storage for photos, since it ties in directly to Yahoo Photos, which has had unlimited storage. Yahoo Mail, however, will continue to have a 1GB limit for free users and a 2GB limit for Mail Plus users.

You can check out Yahoo! Mail's new photo tools at

http://photomail.mail.yahoo.com

.
The images in the PhotoMail e-mail are thumbnails. Users can see larger images of the same picture in higher resolution by clicking on the image in the e-mail. The bigger image is then served up by Yahoo's online photo service.

In other news - The Times of London is reporting that a women is suing Yahoo! for $3 million (£1.6 million), alleging that the web portal, content and search-engine company has failed to remove naked pictures of her posted by her former boyfriend.