Scroll down to the bottom of the page you are editing. There should be a box that says Main Image or Chapter Image. Post the direct url of the image there. The picture has to be hosted by deviantart, phototbucket or something like that. It will tell you if the image host is wrong.
OR: in the chapter text box itself click the little icon that looks like a picture with a barn in it. It should say image when you scroll over it. The paste the photo url there and hit ok. Your picture should show up in the text box and you can size and move it around.
If the picture doesn't show up sometimes it has to do with your browser. I have to use firefox to post images and videos.
I hope that helped.
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