Step 1 is to browse and find the image. Click on the browse button, find it...also click on the 'inline' box right beside the browse button, then on the upload attachment button. Those don't have arrows in the image, but are on the same line as the browse button
Step 2 once the image is uploaded, click on the inline box Step 3 click back inside the document you are editing to get the cursor into the spot where you want the image to show up Step 4 click on the 'image' button in the tool bar above the editing window and a dialog box will pop up. Step 5 choose the 'inline image' option and your image(s) will appear as options to select on the dialog box
Unfortunately this does not seem to work in Internet Explorer, not for me anyway. Works in Firefox.