When you are writing your post, you are typing in the main textbox. Then below this box are the submit, preview, save and cancel options. Then below those you see a blue bar that says 'upload attachment'. Under this heading you click 'Choose file', and upon doing so a box pops up showing files on your computer. Navigate to the picture/file you want to attach, as you would navigate through folders normally. Once you have found it, select it and press open/choose. You will notice next to the 'choose file' button your file name has appeared. Type something in the file comment if you want a caption, and click 'add the file'. The page will reload and you will be able to scroll down to just underneath the text box, and see a bar that has your attached file name on it. You can select 'place inline' to put it in a certain part of a post like here:
Attachment:
File comment: File Comment
Screen shot 2010-02-24 at 10.54.52 PM.png [ 21.84 KiB | Viewed 333 times ]
Otherwise I think it just stays at the bottom.
Hope this helped!
-Mark-

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