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have you tried using the Image Manager built into XOOPS?
First create at least 1 category in System -> Images, then when creating a news post, click on
. If your group permissions allow it, you will then be able to upload an image directly to your site, or choose from a list of one of the previously uploaded images.
If you would like to use these images as an image gallery, I'd recommend the myAlbum-P module, which has a feature which ties the gallery to the Image Manager, meaning you can browse the images in your gallery and insert them from the Image Manager.