You have to upload them to a hosting site first, copy the link, then right above the font size option there is a little landscape picture looking icon thingy, click on that, paste in the url and voila, PICS!!! Sorry for my lack of technical jargon. hope that works for you.

photobucket hosts pictures but nothing hardcore i dont think. but yea.. just upload a pic to that (or whichever host you choose). copy the embed code and then paste into your entry. thats how i would do it. i'm sure there are other ways though.
good luck!

aw, i'm sorry my post made you sad.

but i'm glad we're now friends <3