Loading pictures takes more steps than I would feel is necessary. You need to start the blog entry - I had to alter user permissions which was part of the problem.
At the bottom under the blog you will see under images & Attachemnts 'Add/link files'
Clicking on this takes you to a file upload page - click on browse at the bottom and find your file - click on quickupload and after a short wait a thumbnail of the file should appear in the list above with a tick box next to it. Cick on the tick box and just below that you should see a 'Go' button next to a box that says 'insert IMG/link into post' - that should put your image into the post.
Check how it looks on preview and amend image as necessary. The image here should be of my cat when I was late back without telling it I would be!!!