1st, you upload your pictures to your personal gallery using the "Create Content" link.. then when you are editing your blog entry look for a link that says "Add in-line image" or something. Click there, then click the "My Images" link, from there choose the image and insert it into your blog entry

First you must post the photos, either to a public gallery or your private image gallery. Click create content, then choose gallery image. Choose a folder, or leave "none" selected if you want the pic in your personal image galllery. Then click "choose file" or "browse" depending on what browser you use. You can modify the properties of the photo in the image assist window. Submit the file and then your pic is uploaded. You may see HTML text in the blog. You can hit "preview" to see how it will look.