This is a TEXT post. The image to the left is actually at http://www.geldingway.net/wp-content/uploads/2010/01/shark1.jpg. Post a TEXT, and select the “Insert/edit Image” icon just above the Post text box. Always use a Left alignment - the code pads the image with space to the right and bottom.
The image is 150px x 1-0px. This means a post can look nice provided the image isn’t too big. If the image takes up more than 1/3 of the space, the supporting text could look a little odd as it wraps “around” the image.
This is probably the best way to insert a single picture with supplemental text.
If the picture is large, use the PICTURE post instead of TEXT or just put it in flickr.
If there are many pictures to display, use the LINK post and link to an external picture management tool (like Google’s Picasso).