A new feature that was added in the recent update was the easier-to-use Upload Image and Upload File buttons on the Compose a New Post page.
These buttons replace the Upload File link and also give you the choice of wrapping text so it flows around an image. You can use the default options for this, or set your own configuration.
To upload an image or file to your weblog, click the Create a Post link for the weblog on your Weblogs tab (or click the Post tab in a weblog) to open the Compose a New Post page.
Directly above the post text area--the Post Body or Post Introduction, whichever you have set--you will see the icons for uploading.
The buttons will automatically create the code to use in your post for displaying or linking a file. One button is for images and one button for files:
Inserting an Image
Click the Insert Image icon to open the image upload popup window. Browse for the file on your computer to select it for uploading. Note: valid image types are .gif, .jpg, or .png image files.
You can use the default options for the image configuration, or uncheck the box for “Use Default Options” to specify new settings.
If you do not want the text to wrap around the image, uncheck the box for Wrap Text. If you do not wish to create a thumbnail for the image, uncheck the box for Create Thumbnail.
If you leave the box checked to create a thumbnail, you can also specify the width for the thumbnail if you would like to create it at a size other than the default (100 pixels) and select whether to link to the full-size version of the image in a pop window or not.
Click the “Insert Image” button to upload the image and automatically insert the code into your post area. Save the post to see the image displayed on your site.
Inserting a File
Click the Insert File icon to open the file upload popup window.
Browse your computer for the file you would like to upload and click the “Upload File” button.
The file will be uploaded and the code inserted into your post area. Save the post to see the file link displayed on your site.