Yes, click the 5th icon from the left side above the message box. (Brown with blue arrow - Upload Inline Images)
Then click on choose file
Then find your picture and select it
Then click the Add file from your PC button
Then click all done.
Then it will return you to the message window with code inserted. This code will be replaced by your picture ones you post your message. Just put the code before/after the text where you want it to appear.