Windows Live Mail doesn't have the Source, Edit, HTML tabs like Outlook Express so it's almost impossible to embed videos into Live Mail. So, I tried a few things and found the following to work best:
One way of embedding video is using stationery (need to know a little html, =very little=) - works in Outlook, Outlook Express & Windows Live Mail (Vista & Windows 7).
Create a new stationery (html) using a text editor or an existing stationery html file (name the new stationery - "Embedded Video.htm" - without the quotes and save it to the Stationery folder).
WinXP Stationery folder:
C:\Program Files\Common Files\Microsoft Shared\Stationery
Win Vista & 7 Stationery folders:
C:\Users\"username"\AppData\Local\Microsoft\Window s Mail\Stationery
Then create a blank (white background) JPG pic file (800 x 600 pixels) - name the pic file "Embedded Video.jpg" and save to the same Stationery folder. When you need to send an embedded email just modify the new stationery you've added placing the embed code between the <BODY></BODY> tags.
Don't forget to modify the <BODY> tag with your picture info. I.E. <BODY id="ridBody" background="Embedded Video.jpg">
Example of Stationery html code below:
font-family: Segoe UI;
margin-left: 10 px;
margin-top: 15 px;
background-position: top left;
<BODY id="ridBody" background="Embedded Video.jpg">
<-----------Copy & Paste embed code HERE--------->
Now when you want to send an embedded video just open a New email message & select Format>Apply Stationery>More Stationery... then select the new stationery that you modified "Embedded Video.htm"....done!
Note: you will not see the video prior to sending, just the embedded box outline and you may get script error messages (depending on your security settings) but just ignore them. To enter a message above the embed box, just do a few carriage returns (Enter) to move the video box down a few lines so you can enter your email text message.....and Send.
To view the embedded video - check your Sent folder and, like magic, you will see your embedded video email.
There is an easier way in Outlook Express using the format tabs switching between Html, Source & Edit but, I wanted to add this example for those using Windows 7 & Windows Live Mail.