The first method to place an image is to go up to the Insert panel, and make sure you're on the Common tab. Then, the sixth icon from the left, the one that looks like a little tree in a box, is what you click on. Then, it will give you some options. Choose Image.
Figure 15
Another method is to go up to the Insert tab and click Image.
Figure 16 - Click to Enlarge
Both ways shown above lead to the result below.
Figure 17 - Click to Enlarge
Here, you can look for the image you want shown. Make sure the image is on your server or linked to another website address (with citation, if necessary).
This is if you are linked directly to the remote server online via Manage Sites. When you are after the stage shown in Figure 17, it will ask you if you want to "Copy the File there..." if it is not already located on that server. For example, if you link to a file on your harddrive, it will ask you to put it on the server. You will want to say "Yes" because this allows the file to be saved into your website.

Figure 18
After you click "Yes," select where you want it saved. If you do not save it to the website, the website will try to look for the image on a harddrive and it will not work. All website elements must be in its folder or linked to another website.

Figure 19
In the image above, after you have selected where you want your image saved, it asks you about alternate text. Alternate text is what text you see when the mouse hovers over an image. If someone has really low resolution, too, they'll see the text instead of the image. It is not vitally important that you have alternate text; it will not affect the image itself. You can still add images without using alternate text. However, alternate text is vital when making your site accessible to the visually impaired. There are programs available that "read off" the alternate text when they hover over an image so that they can understand what is on your page.