mollyblossom on "Inserting an image"

I'm new to wordpress and am trying to insert several images into one posting. Whenever I try, no matter where I put my cursor in the post, the image goes to the top of the post. Also, the documentation suggests that the actual image should appear when I'm editing my post. I don't get the image, I only get the html (I assume it's html) code. What am I doing wrong?

Thanks!