im 2 days into drupal and

Read the module information and the help documentation on the site. It's a two-parter process that is not always easy - upload image, then insert into your text. If you have 'clean URLs' set up then several of the helper modules work great. Using IMCE and either fckeditor or tinymce, you just click on the Image button in the editors and it will step you through the upload process and allow you to select from the uploaded images to insert into the editor pane.

More advanced capabilities: Imagecache will let you set up formats for images (e.g. thumbnails, specific sizes of user profile images (e.g. 200x200 square or 200x300 by doing a resize/crop operation) which you can then call by requesting an image, e.g. image2/userprofile2 to automatically create and then cache the image for future use. Very cool.

Image Assist is also a very easy to use simple solution.

Turn on upload module.
- set your role allowed for uploading files
- make sure you have space and attachment types set
- admin > site configuration > file uploads
Enable your content type for attachments
- admin > content management > content types : edit - attachments Enabled.
Set input formats
- admin > site configuration > input filters : edit appropriate filter and add <img> to the configuration.

Create content
Attach file - uncheck List file, copy the file path under the box once it's uploaded.
Now you can use <img src="path/image.png" /> in the content area.

-Steven Peck
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Test site, always start with a test site.
_{Drupal Best Practices Guide -|- Black Mountain}