How to Attach Images Inline,
or, What You've All Been Waiting For (tm).
1. Start a New Post.
1_1.jpg
2. Click on the Paperclip (or Manage Attachments), and
upload your pictures as usual:
1_2.jpg
3. Now, click on the little Arrow next to the Paperclip. You will get a drop-down list of all images available for you to attach inline.
1_3.jpg
(It will insert an "ATTACH" tag, as follows.).
1_4.jpg
...and VOILA!