This post is “how to” insert an image into a WordPress blog post.
The “upload to WordPress” is easy — look at the bottom of your blog post window: there is an “upload” tab. Browse your harddrive and find your image (this is web-based FTP). Be sure your cursor is where you want the image to appear when you do this step! [Note: you have only 50 MB of free space at WordPress -- if you're going to use images frequently, you'll want to host them on an external website.]
The other way to embed an image is to use the visual tool bar icon that looks like a small tree. You’ll click this icon when you are ready to insert an image: the image will be inserted where the cursor is active.
This tool provides a little more control over image placement (the alignment drop-down menu) — although with both methods, you can edit the HTML by clicking the “code” tab at the top of the post window!