Thanks. Ok, now I see how it works. Everything is good now. Thanks again for the help.

Kingdomwith has answered your question. One thing, though, It's best that you transfer your photos to pictures file, and make sure they're in .jpg or .jpeg format. This way it'll be easier for you to upload from your 'Add Media' into your post or page. Also, once the image is on the correct line or space, click the 2 icons, and there you can align the image to 'left' 'center' or 'right' and then update/save it.

Thanks. I have to try a few things. Its not working the way i thought it would.

AFTER you type in your content, place your cursor where you want to insert the photo. Then, click on the button that says "add media". This will open your media library and you can select the photo you want to insert. Just fill in 'Alt Text' and 'Description' fields and click 'Insert' button. The photo needs to be in your media library.
If the photo is not in your media library, you need to upload it into your media library. Go to your media library, click on the 'Add New' button at the top. It will take you to another page with a box that has "Choose File". Click on "Choose File", find & select the file/image from your PC. When it shows up in the box, then click the 'UPLOAD' button. It will take a few seconds. Then it will show you that your photo has been added to your media library. Unfortunately, I have not been able to select more than one photo/image at a time to upload. So, if you have more than one photo you want to use, you'll just have to add them one at a time.
Hope this helps. :-) Ms Terry Ash