Where am I going wrong

Well I've tried to add pictures from the posting page and it won't let me do it. I'm obviously doing something wrong, but for the life of me I don't know what. The only way I seem to be able to upload pics is from the template page by adding a page element. See big pic at bottom of page). Should I be resizing my pics before I upload? When I look at friends blogs they have all these lovely pics placed within the writing so way can't I. Really fed up with it now. Also can't retrieve draft blog to publish, so think I better give up with it tonight before the air turns blue, and son's computer ends up across the room. (my laptop charger blew up and buggered up the battery).!!!