We have added additional tools to make adding images easier. To do so, click the Insert/Edit Image tool on the main WYSIWYG toolbar (third button from the left on the lower toolbar), not the Insert Image button below each text box.
When you click the Insert/Edit Image button you will be presented with a dialogue which will allow you to choose from images already stored on the system. Stock images basically. The lower half of the dialogue will show you a menu tree which should be self descriptive. The top half contains some lines that you should fill in. The URL of the image will populate itself when you select an image, as will the Description and Title. You should provide a proper title and description that fits in with your item content. You can also choose how the image is aligned. Hit insert to accept the settings you have chosen and you will see the image appear in the content.
You can drag the image up and down within your content, and if you highlight the image and hit the Insert/Edit Image button again you can change the setting like alignment again until you are happy with the placement.