Oy... I just realized I had turned off some really cool advanced editing capabilities with images long, long ago, not really realizing the value of what they provided.
If you now look in the upper left hand corner of the box in which you type posts you'll see two A/A icons, one to turn on more fancy (WYSIWYG editing) and one to turn it off. Once you insert an image if don't immediately see it, click the far left icon once and you should get a preview. You can also double-click the image in the window to get some enhanced features like layout (right, left, center), meta-data (fancy word for naming your image content) and the ability to link those much easier. Give it a whirl here if you wish.
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