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Try to study the image manager.
1) From the admin panel, go in the part reserved to it
2) Create a category and upload a picture inside your category
3) Assign the rights to upload picture to yourself.
Later, when you are "using" your site, from any module that use the default text editor, like the news module for example, you can insert images inside your text AND upload pictures.
You just have to click on button labeled "Manager".
Bye,
Hervé