If I'm uploading from my computer, I will click the Go Advanced button. Once at the advanced reply window, there's a Paperclip button/icon for attachments. From there you can attach images and they will load after the post at the bottom. There's limit to the file size and number of attachments a post can have, and once you have browsed to all of the attachments make sure you click the "Upload" button and wait for it to finish before actually submitting your post/reply. They will show up like the picture at the end of this post.
You could also insert them into the post from another site like facebook/imgur/photobucket/etc by clicking on the icon that looks like some mountains and a sun or moon that happens to be the button for Add Images. A window will popup asking for the URL of the image. After putting in the entire URL (including the
http://) and hitting OK or whatever, it will add the image tag.
Then it should look like that!