“Upload Images” dialog hack?

Hi all,
I’m using wordpress to run a site where various writers will be contributing work, and I’d like for each of them to be able to include an image. The image would always run in the same place – upper right-hand corner of the post – but I don’t want to make them deal with FTP or coding IMG tags.
Back when we were using Greymatter, there was an “upload image” box on the “new story” page, complete with browse and upload buttons, that would upload an image from a local drive, and drop the appropriate IMG tag right into the story. Has anyone done such a hack for WP, so that such a box appears on the “new post” page?
Best,
James