Create a media archive?

Hi everyone!

I´m making a blog using Drupal and I´m doing some fast progress.
I got a problem though, a pretty big one, when I want to use a picture in a blog entry, I have to type in the "URL" of the picture.

Problem is that the picture does not have a URL yet, it´s on my computers harddrive! Since I´m using a localhost I guess that path would work for now, but not when the blog is on a real webserver.

So I need to create a archive where I can upload pictures from my computer and that way the picture will have an URL.
I was thinking that I could create a new navigation link where I would a little library for my pictures.

TO THE QUESTION: What is the best way to do this?

Regards

Keinen