This will start off as a basic guide and I will enhance it with pictures as I go along. Please comment if the terminology is unclear or too technical and I will try to improve it.

Uploading your pictures
The first step before inserting any pictures in any posts is to know where you want your pictures to be hosted (stored) on the internet. The pictures can be hosted here on this forum or they can be hosted on other more specific picture hosting websites such as Flickr, Photobucket, Imageshack, Smugmug and others.
If you choose one of the above websites to store your pictures then I can't help you with the methods that they employ to store them as they will all be different. However they are pretty slick.

You can store your pictures on this forum and this does make the whole process reasonably slick so I would recommend this to make it very easy for you.
I will now take you through the steps to do this.

Click on the Pictures link in the top right hand corner.
The next step is to create an Album to put your pictures in.
If you have created any Albums previously you will see these albums at the top. You will also see Albums that other people have created.
Click on the link in the bottom left that says "Add Album" or the "Create New Album" link to the right of "Recently Update Albums" title.
Create an Album by completing the title and description fields.
Please make your album titles descriptive and relevant. So for example "Camping Trips", "Outwell Norfolk Lake", "Dartmoor August 2009" are good titles, "Pics" is not so good.
The next step is to decided whether want the Album to be public or private. If you make it private only your friends and yourself can see your photo's so this is not suitable for posting pictures in the forums. The default is public and means anyone can see the
Next step click submit to create your album.

When created you will see the empty album.
Click on one of the 3 links "Upload Pictures" or "Click Here to Upload Pictures" to start the picture uploading process.
Just a quick note here. If you have already uploaded some pictures you will see a link smack in the middle of the page entitled "add pictures to a group" this is only for adding pictures to a social group and isn't generally needed.

Right have to go out now... so coming back to this later...