Even better, though, is the fact that Blogger keeps your original uploaded picture as well, and provides a link so that if an image has been reduced (like the pictures in this article), you can click the image and see the image with all of the original detail. (Go ahead, try it.)

Uploading Your Images
The first step to adding a picture is to upload it to the Blogger server. You do that by clicking the little picture icon in the toolbar (right):
That opens the Blogger "Image Upload" window, which looks like the photo shown below. If you want to upload only a single picture, then click the Browse button and select it from your local hard drive. If you want to upload several pictures at once, you can click the Add another Image link, and the Image Upload window will add another upload control to the window.

The maximum number of pictures you can upload at any time is five. Once you've selected all of the pictures you want to upload, you have to decide what size you want them to be in your blog, and how they'll be aligned (center, left or right).
If you choose center alignment, then each picture appears all by itself on a row, like most of the screenshots in this article. If you choose left or right, then the text in your article will "flow around" the picture, like the image at the beginning of this article.

If you later decide that you want to change the alignment, the easiest way to do that is to just upload the picture again. If you want to change the size, though, you can just grab a corner of the image and drag it to the size you want. (Personally, though, I've found things look better if I don't do that.)
When you click the Upload Image button, your images will be sent to the server. This might take a few minutes depending on the size of the image, of course.

After your images arrive, just click the Done button to dismiss the Image Upload window.

Moving Around
When you upload images to your blog, they're automatically placed at the beginning of the article, (which can be kind of disconcerting, the first time it happens.) Don't panic. All you have to do is drag them where you want to go (or use cut and paste), and things will be fine.