When you want to insert an image on to a page, click on the Picture Frame Tool (the one meant to look like a landscape, next to the Text tool)

When you have done that, you will notice that your cursor turns into a + sign. 

Do not panic!  Move the plus sign to where you would like to insert the picture, click at the point where you would like the top left hand corner of the picture to be, and draw the outline of a frame ... when you try it, you´ll see that it´s easier to do it than to describe it!. 

Then go to Insert, Image and follow the choices according to whether you want clipart or a picture from your files.  The picture you choose will be inserted where you drew the box, and you can then edit it or move it or change it as you please..