How to Attach Images Inline,
or, What You've All Been Waiting For (tm).

1. Start a New Post.

1_1.jpg

2. Click on the Paperclip (or Manage Attachments), and
upload your pictures as usual:

1_2.jpg

3. Now, click on the little Arrow next to the Paperclip. You will get a drop-down list of all images available for you to attach inline.

1_3.jpg

(It will insert an "ATTACH" tag, as follows.).

1_4.jpg

...and VOILA!