Try a table for horizontal positioning. Images can be put into HTML tables along with text and links. The table tool is on the upper toolbar near the right. Cell spacing is the space between adjacent cell borders, while cell padding is the padding between the borders and the text or other content inside the cell. The units are pixels.
Table cells can expand and conract to accomodate the contents.
You can add pictures. Pictures do not become part of the web file, they way they do with word processors. Only two file formats are reliably available - gif and jpg. The choice of format is important. You can insert either type of graphics file on your web page.