Happy February! and HELP!

So last year in February... I did the whole post-a-day thing! It was fun, but I'm not sure I'm going to shoot for that same goal this year. Either way, it really is crazy to me to think I've actually really been doing this for over a year now.
Anyway. That wasn't where I was going to go with this post.
Where I was going to go was to ask for blogger advice! Apparently, even though I've been around a while, I haven't figured out all of the things blogger can do. E.g. Responding to comments on my blog with an email to yours (the reader).
I receive email responses to comments I post sometimes and I think its a nice personal touch. But... I just have NO idea how to respond to the comments YOU leave me (unless I happen to already know your email or I decide to leave you a comment in response on your own blog, which is not always handy).
Any help, or advice, or step-by-step instructions, OR offers to enable this feature on my blog are welcomed!
Thanks.

Question.

For anyone with more blogging knowledge than I have:

How do you post a picture in the middle of text? Every time I add pictures they just go to the top of the box for drafting... I would like to be able to add pictures in their appropriate photo place? 

Thanks for your help!