Can someone tell me how to use the "insert image" button (the postcard looking icon in the row just below the "font, size, color" windows, and above the large box in which we compose our posts)?

It seems there is a way of uploading pictures which will let one place images throughout the text, rather than grouped togeher at the end of the post. I thought it must be with the "insert images" button, but I get a window which asks me to type in the web address of the image, which would be my computer, so I don't know where to go with that.

I belong to another website powered by V-Bulletin, which is nearly identical to this format, but which, in addition to the "manage attachments" function, has an "image uploader" as an item in the dropdown menu under "quick links". It operates in the same way as the manage attachments button, but allows one to insert the images wherever in the text it is desired, rather than forcing them all to the end of the post. This is much better for posting works in progress, or step by step posts.

Is there a way of doing that on this site? Thanks in advance.

Dan