First you will need your pictures hosted on another external site, it., photobucket, imagestation, flickr, or even dogster. The reason they need to be on an external site, is because they carry a lot of bandwidth and we can't afford the storage space, so this allows us to view the pictures, without having to store the pictures!

Once your pictures are loaded onto another site, open two browser windows, start typing your text into the DLC, once you are ready to post the picture, go to your other browser window, go to where your photo's are kept and open the picture you wish to insert. Once you have the picture, right click on it and highlight all the "properties" or "address" of the picture, then come back into the DLC and click on the little yellow icon with the mountains and sun, and paste the properties on the pictures. It should have [img] [/img] around a bunch of text.

Please see below examples: