On a new Dolphin 7.4.2 install; as I couldn't resolve upgrade hell from 7.3.5, what with the PHP version changes needed and 3rd-party modules not up to speed with those changes.
I tested it with this one, although 'embed' might be the wrong word.
Dolphin pulled the description and keywords from Flickr and uploaded the photo to Meta-Travel.
I also pulled my own photo from Flickr.
Not sure if it would 'embed' a photo from another account. Might test that.
There could be legal and ethical issues there though, as it would probably need a 'courtesy' link to the original.
Michel - Meta-Travel.com