Upload and insert image in-place Is there a module that allows images to be uploaded and inserted in place, like in a block or something similar?
I think you're looking for the Insert module.

Here is the description from the Project page on Drupal.org


  Insert is a utility that makes inserting images and links to files
  into text areas or WYSIWYGs much easier. It adds a simple
  JavaScript-based button to FileField and ImageField widgets. When used
  with ImageField and ImageCache, images may be inserted into text areas
  with a specific ImageCache preset.