Why are you not using fckeditor version of dhsoft http://www.simple-xoops.de ? Upload is working and not just a demo like ckfinder.

You have to replace the file system_imagemanager.html in modules/system/templates.
This file you will find at the KOIVI-Homepage, but it is only included in the 2.0.13 version of the editor.

http://dev.xoops.org/modules/xfmod/project/showfiles.php?group_id=1038

After updating the system module in the administration menu you will find a new icon in the imagemanager, use this icon to insert images, not the alignement icons.

Hope this will help