I had the same problem as you - here is what I've done so far....
1) While in your web mail, hover your mouse over "Windows Live" near the top left
2) From the pop-down menu, select "SkyDrive"
3) A new page appears - your SkyDrive page
4) From "Options" pop-down, select "Email publishing"
5) Put a check mark next to "Turn on emal publishing"
6) Follow "Step1" and enter your email address
7) Follow "Step2" and enter a secret word
8) Click "Save"
Now when I went back to compose an email, I still had the same problem as you (while composing an email, I couldn't select Photos, and directly add a link to my web album)
Here is my work-around
(this procedure assumes you've already created an album)
1) Go to your "WindowsLive" home
2) Select "Photos" / "Your Albums"
3) Open the album you want to share
4) Select "Share", then "Get a Link"
5) On the new page, look at the "Note
The people you share this item with will need permission
to view it." )
6) Highlight the link, then right click and "copy"
7) Click on permission
, which takes you to a new page
8) Configure the "Who can access this" slider. In my case, my slider was on "Friends". I clicked on the # beside friends which opened a new windows which listed my friends....I verified that the people I wanted to send a link to my photo album were on my friends list
9) Paste the link (from step 6) into any email
10) I tested this by sending the link to my work email address
Link directly opens up a slide show on black background...of your album
- I'm not sure if I had to turn on "email publishing" to successfully use my work-around?