When you upload an attachment, like a picture, you can check the box and click upload attachment and then once it reloads you can click the picture frame on the toolbar and it will paste the picture. It makes it easier so you don't have to edit your post and then paste the picture.
Details for using it as described by the Old Coot:
"First I "attached" four pics making sure that each one had it's "Inline" box checked during the attaching process.
Next I went ahead and began writing the body of my post.
As I wrote, I would come to a place where I would want one of the pics to appear. With the cursor at that spot I would click on the little image icon button (the button looks like a miniature mountain screen). A small dialogue box pops up prompting you to select either an Image Location or an Inline Image. Clicking the radio button next to "Inline Image" would then display the four pics I had previously "attached" with the inline feature.
I then just simply clicked the radio button next to the pic I wanted to display and then click on the Submit button and … wallaaa … the picture shows up there."
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