John,
Upload the photo to your album. Select Photos from the buttons at the top, then select "Upload" from the "photos" box in the middle of the page. Under category, select "Member Photo Albums" and then click "continue". From there you'll be prompted to browse for the photo and enter a title and description.
After you've uploaded, you can click "Images" when you are creating or editing a post and then just click on the image you want to insert.
-Barry