You have the wrong editor selected in your options.
You need to click on the "My Home" link up near the top of the screen, and then select "Edit Options". At the very bottom you'll see a choice of "Message Editor Interface". Choose the 2nd option from the drop down and then save. You should then be able to see the Images link below the smilies.
cheers,
rfs
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"The map is not the Territory"
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