Yellow bar at top of page - User CP also has a photo library facility for you to upload from your hardrive to create a library. First example below is with that method.
Second example is as described in the post above. Much higher resolution allowed with this method. Showing it as a thumbnail until you click on it allows this greater resolution without messing up page loading times.
Option 1 gives you a long term library on the server.
Option 2 is a one shot method giving you much higher resolution and expanded file types. Makes pics better obviously but more importantly helps with documents and letters.
One drawback with option 2 is no image preview in the submit box - be brave and hit submit once typing and image upload and selection is complete
Rob