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In the standard sections module --> sections configuration you can name your section, and are given a textbox to load an image. There is no browse button, therefore the image must be already uploaded. I uploaded images through image manager, assuming that they would be available systemwide.
I'm just starting with XOOPS. In Plone, there is a toolbox that can be launched and you can navigate to various parts of the system and select images to be embedded. I may be carrying that paradigm with me, unfortunately. Hard to shift gears sometimes. Thanks for the quick response.