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How do you paste Snagit captures into Gmail?

When I copy an image to the clipboard in the snagit editor, the image fails to paste into google gmail. Gmail gets a white box and no image. If I use another screen capture utility (like the windows snipping tool) the capture pastes correctly. I have a feeling snagit is copying to the clipboard in PNG or BITMAP format and I cannot find a place to change this to JPEG or something else that is more email friendly. Please help.
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