WordPress is going to release the next version 2.9 (stable) by end of the next month but if you want to have a look, you may download the WordPress 2.9 Beta 1 (Rare) legally on WordPress. We had reported that WordPress 2.9 is going to have some new features like image editing. Code optimization is done in WordPress 2.9 to reduce the server load of installation.
Apart from Image editing , crop feature, you can also see a new section under “Settings ==> Media” tab of wordpress dashboard. This new section is “Embeds” where you have to choose to allow different media (like pictures, videos etc) to be embedded by providing the URL for the same. By using this feature, you can embed Flickr images, YouTube videos in your posts by providing the URl for the same.
Image Editing Media Options | WordPress 2.9 Beta
Embeds Under Settings/Media
Get the details about oembed, the format used to get images or videos embed on wordpress posts by providing URL.