Leicester University: Richard Mobbs' "Introduction to HTML/XHTML: Including Pictures"
Images are such a core part of the Web experience that we can hardly imagine a webpage without at least some illustrative or decorative photographs or illustrations. Including images inline in a website is very easy. Read all four pages under the "Including Pictures" heading on the Introduction to HTML/XHTML website.
Move an image you would like to use on your website into your working directory. Next, use the examples on this site to include this image in your example website. Then, see if you can make that image into a hyperlink to a website elsewhere on the Web - or to a separate example page that you are developing. Don't worry too much about formatting it now, as you will learn to format it using CSS later.