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First you have to upload the photos to a web site. It could be your own, maybe one of the photo web sites or whatever. Then you need to know the URL address of the photo.
Then when you compose a note, look at the top and you'll see an icon labeled "IMG". That will let you put in the URL (address) of where the image is stored. That's all there is to it.
Charlie
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This is actually only one way of doing it. The other way is to just browse to the image on your computer and attach that way. You do not need to have a hosting site to get a picture up here.