When you start writing your post, below the submit button, you will see an 'Upload Attachment' tab. Click this, then click 'Choose File', find your picture file then finally click 'Add the file' button upload your picture.
You should end up with something like this:
beer.gif (6.08 KiB) Viewed 577 times
To put the pics in the correct part of your post rather than all at the bottom, click the 'Place inline' button once you have uploaded the file. This will put a line of code in your post which you can then place where you need to between paragraphs.