I've been reading through all of the FAQs and sticky threads about images and I have a question.
If I want to have an image in the flow of text, but still conform to JM's request that we all use the attachments tool in "advanced" new thread, how do I go about uploading an image to the site and then get a reference to it to allow me to use the IMG tag in the post?
After you have uploaded your images to your post, place your cursor in your text where you want an image to appear.
Click on the little arrow next to the paperclip button. A menu will drop down listing all the images you have attached to your post.
Select the image you want to appear, and the appropriate code will show up in your text.