An online conversation from Tuesday the 13th:
(00:36:17) John: Have you been using Blogger recently? (00:36:29) Sporkey: no (00:37:41) John: Sez here, "Google said it formed a partnership in May with Picasa, which is based in Pasadena, Calif. That deal allowed users of Google's Blogger service, a site where people can publish personal journals, to post photos using Picasa's software." I wonder if that means Picasa's software is on the server, and any blogger can use it, or if it means you have to buy Picasa, and then you can use it. (00:38:47) Sporkey: don't know (00:39:28) John: I haven't noticed anything on Blogger that would seem to be for posting photos. I definitely like that they've added built-in comments.
And lo and behold, when I got home last night, there was a new interface on Blogger, with a tab that lets you compose without messing with the raw HTML (which I'll probably never use), and—wait for it!—an "Upload Image/File" button. So, I'm going to try that out now, with the side benefit of giving myself an XML logo to put up with the site feed over to the right. (You do know about the site feed, right?)
That should be it right above, I think, if I've guessed their intent correctly. Otherwise, you might get nothing there. If it does work, then it goes into the template as well.
Added: Well, I guess it isn't working after all. And now, if I click that button which brought up a dialogue for uploading an image before, instead I get a window saying you can't upload directly, unless you have one of the special packages or something. So I guess I'll have to give up on doing it that way, for now.