I love that as an avatar! It looks dreamy and other-worldly, like you said!
To add photos, what I do is upload my image from my computer to an image-hosting site first -- I use postimage.org because it's free and easy, not a lot of ads. The site allows you to resize them to a format good for email or websites. Once an image is uploaded, you copy the web address found under "Direct Link" and paste it into a post, surrounded by the opening tag [img] and the closing tag [/img]
Give it a try!