You can include pictures in the same edit story window in which you add text. To get there, start by clicking the story prompt to which you would like to add pictures and click the edit pencil icon.

At the top of the Edit Story window are two tabs: "Story" and "Pictures". In the "Story" tab you can add your text. In the "Pictures" tab you add photos and captions. Start by selecting the image location on your computer, or by dragging the image over either image upload area image areas.

Select whether you want the image to be horizontal or vertical. You will be able to rotate, crop, and move the picture. The brightened area of the image is what will be printed in the book. When you're satisfied, click "OK". You will see that image has moved to the "Pending Pictures" section. Repeat adding and modifying as many pictures as you like. When you're done, click "Upload". This moves the pictures to the "Current Pictures" section.

In the "Current Pictures" section you can add captions as well as resort the image order. The images appear in the book in the same order that they appear in the "Current Pictures" section. To reorder an image, click on the up/down arrows to the right of the caption text box. Drag the image to be in the correct order and then release the mouse.