The pictures have to be online someplace. There are free places to load pictures, and www.snapfish.com and www.yorkphoto.com both work really well, and have an easy interface for loading pictures. They are free for a year, and they only want you to buy something once in awhile to keep your account, like prints or a mousepad with your photo on it. They have cool stuff to buy, but you can worry about that later.
Anyway.... upload the pics there, and when they are uploaded, right click the pic and view the "Properties" of the pic. Right click on the web address 'url' for the pic, 'select all' and then 'copy'. Then paste that code (all of it, they can be long) into this 'image source' html code:
<img src="http:\\url here">
The code to post one of my earlier photos:
If you were to right click the pic above, the properties of the pic are all this gibberish: http://images.snapfish.com/33%3B8748323232%7Ffp63%3Dot%3E2329%3D%3A3%3A%3D768%3DXROQDF%3E23235%3C5996677ot1lsi
when you type the img src code, it looks like this:
<img src="http://images.snapfish.com/33%3B8748323232%7Ffp63%3Dot%3E2329%3D%3A3%3A%3D768%3DXROQDF%3E23235%3C5996677ot1lsi">
It sounds complicated, but take it step by step and it really isn't.