on the bottom of the big box where you type your entry, there's a link that says "rich text format" or something to the effect. Click that, and you'll see a bunch of buttons appear along the top. Hover your mouse over the ones towards the right. A little box will appear that tells you what the button does. One of the buttons is to insert a picture, I believe it's to the right of the "insert link" button. Click that.
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