Inserting a new image in template

I did it. Thanks.

I am using hot_relief template and TinyMCE editor in joomla 1.6.
I am unable to insert image into table. Shall I place the image in template's images folder or joomla's images folder. A blank cell appears when I specify the URL.

Referent path Start is joomla root folder , so you can use both of them. If you use relative path put ../ first to make sure you start from root:
../images/stories/...