Q:

Cannot add inline image/picture to a Rich Text control

I have a Rich Text control bound to a Body field in my Domino Document data source ... all is good for formatting text , :) emoticons and the usual stuff.   The problem is when I try to paste or upload an inline image I get the following error shown in the inline image (hmmmm, works here) ... 

A:

Most likely a mis-understanding of the steps:

Select the file
Click on upload image (<-- that one gets lost on lots of users)
Click OK

For a more advanced user experience:
Use the RichText Editor Evolution from OpenNTF.  That makes your life much easier.