Inserting images into post

[Carangajeira]

I am probably being extremely stupid here (and I realise that by saying this I opening myself up to untold abuse from you guys!!) - but I am having issues inserting images.
If I use the "attachment" button I then can choose and upload my images, but how do I place them in my post? I just seem to have a series of images, without the ability to put any explanations between, or space them out in my post. I tried clicking on them (in the "attach files" panel below) while I am creating my post and dragging them into the post, but that inserts the image and ALSO puts a image hyperlink above, which I do not see in anyone else's reports.
I do have some IT skills, and used to have my own blog and personal website (and have also managed a website for both my work and a charity) so am not a total moron (just poco loco!), but this has me stumped at the moment.