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dyoo78:
In the form devised to insert the FAQ, the field for the answer has a row of icons in top of it. Two of these icons are for image handling. With one of them you can link to an image already sitting someplace; you just need to provide the link. With the other icon you can access the XOOPS image manager, so if you want to use images in your FAQs, first use the image manager (System Admin > Images) to create a category of images and to upload the images. Then you can use the icon in the Answer field to retrieve the image manager and pick the desired image.
You could of course also resort to using Catzwolf's WF-FAQ module, which has a better way of handling images. It's your choice.
Cheers.