How to embed images in a Drupal story/page/blog?

I may be missing something fundamental here since I am so new to Drupal, but I am creating new content and want to embed an image in my story, but the Drupal content editor is just a textarea with no visible icons or mechanism for inserting images.

Can someone help a Drupal newbie with a little guidance? How does one insert an image in a post/story?
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Image handling unfortunately isn't entirely trivial in Drupal yet. Major improvement in media handling is happening with the release of Drupal 7 this summer.

For now, what you want to start with, is installing "ImageField", and ImageCache. Imagefield depends on Filefield, and CCK.

You can see an example of this way of handling images here:
The text comes at the top, the images below.

If you need something more sophisticated, like placing images "Anywhere I want", I would recommend adding a WYSIWYG editor
and combining that with "Insert".
If so you may be interested in this video:

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