You can easily Insert an Image by clicking on the "picture" icon in your tool set. 

 

You will get a Pop-up that looks like this.

Click the tab "Upload">>>Browse to the location of the image on your computer>>>Open the file>>>Click "Send it to the Server" button

 

Your image will be previewed and you can now set alignment...(left, right)  alternative text  (a little roll-over title) spacing around image (HSpace and VSpace) and a border, (if you like,  probably "1" is best for the border)

Then click "OK"

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