I think I see the problem. It's on a news article when you click on "Add Related image", I think?
I'm not actually sure if the related image thing is used anywhere, so the simplest fix may be for me to remove that link. I'll check it and either fix or remove as appropriate.
To add an image inline in the text you should click on the image button on the WYSIWYG editor toolbar, then click on the little "Browse" button to the right of the Image URL box, and off you go.
Hope this helps!