Add documentation and a README

+1.
In the grand tradition of cool Drupal modules that are really powerful but don't let you know anything the first time install of this was a blank experience.

• On install - no message or hint.
• Looking in the admin settings - no new item I could see
• Looking at a node edit page where my filefields were - no discernible difference.
• Looking back to the Project page for a better description - no luck
• Looking in the Module folder for a README or INSTALL (I'm obviously getting desperate now) - Nuh-uh.
• Running out of options. About now I normally have to open up the code and actually read hook_menu
  - which didn't work either!

Because I am telepathic and know the deep fundamentals of Drupal, I take a guess and look at
Home › Administer › Content management › {Story} > Manage Fields > {Embedded Images} >
... and scan down to spot a collapsed fieldset in the middle of the page which appears to be the magic spot.

Right. To me as a dev, that is a perfectly logical place for it to end up, yes.

But how about a hint at install time or on the project page Please?
Any of these documentation suggestions would be an improvement.
Me, I think JUST a drupal_set_message() note in hook_install saying:

"'Insert' module is now available to be used on node fields. The 'Insert' feature can be enabled and configurations can be found in the individual Field Management screen under each of your Content Types. Once this is done, the 'Insert' feature will become available on node edit screens.

PS, once enabled, it DOES work most excellently!

I should note that there is a very excellent screencast that is mentioned on the project page. If you're interested in helping other new users, documenting the process you went through would be helpful.

As you've noted, a lot of modules don't have documentation (because developers don't like writing it). If you're not the kind of person for which the code is the documentation (I literally open module files before I read any READMEs), then you can help contribute back to the project by writing the documentation.

I thought I did just document the process I went through :-)
Deliberately, partly in effect to provide a troubleshooting checklist for anyone that's looking.

Not wanting to complain without contributing, :-B, this is exactly why I finished up with a constructive contribution of suggested text that could be put somewhere.
I also often read the code before I open a README, but my suggestion - to add a small note to the user at install time - is even smoother than placing that same information in a file or web page somewhere else where it needs to be hunted for.
I think the utility is not in need of any more explanation than that (dunno, I've had it for 20 minute so far), but the very first step : "it is here" : is missing.

If the wording is correct enough, would a patch to that effect be more helpful? I think it would be pretty trivial but very useful.

PS, I'm already plotting a patch to get the 'description' into the 'title' of the image, but I won't roll an install patch if the wording is still inaccurate.
Is my wording correct?

Yes, patches would be great. :-)

Since we don't have a README at all, attaching a complete file would work just as well.

Well a month later, I think you can't complain about lack of documentation now that you've got it working, you haven't felt the need for it either. :P

I finally wrote up a README and updated the project page with the same instructions.