Adding photos inline

When adding a picture to a post, you can always upload the file using the File attachments functionality, but then don't just leave it as an attachment (it's ok to do that for other types of material, like PDFs, etc.). To embed the picture in your story, go look for its link (by clicking on the attachment link until the picture appears on your browser), and then copy the URL into your code:

<img src="http://channel.media.mit.edu/ict4d/files/roadjunkyfavelas.jpg" alt="favelas" title="favelas">

which gives you the picture inline (don't forget to add appropriate spacing):

favelas

(And don't forget to select Full HTML as Input format.)