Select the Upload Tab
Click the Browse to find the image files on your local hard disk drive.
Once you have selected the image you want then Click the Send to server Button
When the file has been uploaded this will display amongst some dummy text.
The dummy text is not uploaded but there so you can see how the image will be placed if you use the Align options. Alternative Text - This area is used by Search Engines so place some meaningful text here
Linking to an image - choose the Link option and paste the URL you want to link to