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Details:

Once logged in, click the "Pages" link or Icon in the Site Editor Admin Area.
Select the edit icon next to the page you wish to add the picture to.


Set the insertion point (cursor) where you would like the picture to be 
placed.
Click the Insert/ Edit picture icon
If the picture is already on the server, find and select it and set the formatting 
properties (optional) and you are done..
If the picture is on your computer, create a new folder if necessary;
Select the folder
Click the "Browse" button to browse, find, and select the image on your 
computer. 
Click the "Upload" button
Select the newly uploaded picture
Enter the optional formatting.
Click Ok