Is there any other way of inserting pics w/o using URLs?

Every time I wish to insert a pic I need a URL. Well, unless it's a google image, the URL doesn't work and I end up getting the stupid red 'X'.

There has to be a way...also, I don't have Photoshop if it's necessary...

This may give you a hand: Posting / Attach an Image Tutorial

Just what I needed, thanks!