mired in bland blog swamp–rescue crew needed to help upload images

Hi. I’m trying to put images with a blog entries.
I am using Word Press 2.5.1 and working in IE.
I browsed in my photo folder in my computer for the photo (jpeg) to enter in the blog.
I get the message HTTP error.
The photos are smaller than the maximum size so that’s not the problem. I saw one post about typing in a url to upload the photos and using designated flies for this. I am such a newbie I don’t know a thing about that. Your help to get the photos up will be greatly appreciated.

Thanks in advance,
Nili