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Then you are doing something wrong... The principle is simple. You add the pictures to the book and you can see them under the Images folder in the bookbrowser. Then you either insert the image by typing the reference to it manually in codeview or use the menu (Insert --> File..., select the image) and the image should work.
The behavior you are experiencing I have never seen. I never learned to be patient with this software, it just works...
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