Just a head's up to others who like me have a hard time making blogger put their photos where they want them, instead of where blogger wants them, Tracy of Fiber Babble noticed my distress and offered to help:
"Coming up: A 3-part explanation of how to insert pictures into your Blogger posts without uploading them to Blogger. (This is for Candace, but anybody who wants to can use it!)"
So, if you are one of the others who I have heard lamenting the same problem, watch Tracy's blog, as help is on the way. Thank you very much Tracy for taking the time to help us with this.