You can also insert pictures or photos from your hard drive or stick: go to Insert › Picture › From File and choose the picture you want.
However, I would recommend you use the freeware Xnview as described in section 28 to scan your pictures beforehand, since this gives you more freedom to easily manipulate your pictures, cut superfluous parts out and increase contrast.
You can also insert a picture directly from the internet by right clicking it and choosing Copy. Back in your text simply insert it using shortcut Ctrl + v.
You can resize a picture by clicking on it and then grabbing one of the green handles at any one corner, holding down the Shift key and dragging it. Using just the mouse pointer you can move a picture around. With a right mouse click you can decide on the type of Anchor you desire. In most cases you will want a picture to be anchored to a given paragraph, so that when the paragraph moves the picture moves with it. In certain situations you might want to anchor it to the page.
Again, don’t forget to give all your pictures a Caption, so you can easily reference them (see section 21 on Cross-References) and automatically create a table of illustrations. You achieve this also with a right mouse click on your picture.