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MA, the average Kindle book has at least a cover photo attached, and some can have interior photos as well. If you've investigated e-books further, you might know that a Kindle e-book format is basically an altered Mobipocket format. You can add photos to either format. Be aware that, as Kindle displays in b/w and greys only, you might need to manipulate your photo in another graphics application to make sure it is well-readable at greyscale.
Graphics size might also be an issue. (Any Kindle owners around, please chime in on how Kindle handles photo resizing.)
Amazon's Digital Publishing System (DPS) is best suited to upload documents in formats like Word and Mobipocket. It can render documents differently, depending on which format you use... it's always best to check the file you create,
every single page, to make sure it rendered properly. I've never tried uploading a file from PDF, so I don't know how well that would work (or even if it's possible). If you have the file in its original format, you might need to convert it to another format besides PDF to do the upload.
You might also consider using the pro version of
Mobipocket Creator to create your e-book, then using that Mobipocket file to upload to Kindle DPS.