Data URIs can be tricky to implement efficiently however. Since they are a Base64-encoded representation of an image, there is a built-in level of obfuscation that can make manual maintenance tedious. Thankfully, Nicholas put together a command line tool called CSSEmbed which takes the pain out of using them.
CSSEmbed is a very straightforward tool that parses a stylesheet and converts all references of images to their data URI equivalents. Installation is as simple as downloading the .jar file and placing it where you'd like. Then you use a simple command specifying any options, the file to output to, and the file to parse, like so:
java -jar cssembed.jar -o styles_uri.css styles.cssSince versions of Internet Explorer prior to IE8 don't support data URIs, you have to use MHTML as a workaround (again, Stoyan has an excellent post with more info). The command for that is very similar — you just need to make sure to declare a "root" (for example, I'd use http://timkadlec.com as my root for this site) which CSSEmbed will use in the MHTML.
java -jar cssembed.jar -o styles_mhtml.css styles.css --mhtml --mhtmlroot http://timkadlec.comRight now, to my knowledge, you can't parse an entire directory of CSS files, but that's about the only thing I can think of that I'd like to see added. It's a great tool to use during an automated build to really simplify the process of using data URIs and I definitely encourage you to go download it and give it a try.