Select and input method in Info Pane: Drag & Drop (default) or uncheck for Add Link
For Drag & Drop input:
Drop images in the image wells below
Click on image, click on Edit, open the Layout section, set the Scale to 100%, and make sure that the Max Width and Max Height values are large enough to fit your images
In the Image Publishing section, enter the optional File Name
For Add Link input:
Select AddLinkToImage default text and use Add Link from the top toolbar to link to image in Resources or on server