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 images in the Javascript paste event, but I have been unable to locate any references to such an enhancement. I believe ZeroClipboard binds to keypress events to trigger its flash functionality and as such wouldn't work through the context menu (also, ZeroClipboard is cross-browser and the post says this works only with Chrome).
So, how does this work and where the enhancement was made to Webkit (or Chrome) that enables the functionality?