This page contains additional image handing options, which I haven't yet had enough time to describe as thoroughly. Stay tuned for more details.

• Image Assist module (Image module comes pre-packaged with the "Image Attach" module , however it only allows you to use a single image per page and thus is too basic for most people - instead you can add on the Image Assist module -instead of Image Attach- to handle inserting the images "within" the content of a page, and as many images per page as you want... its user interface is not ideal, though it does allow you to browse images by tags if you've tagged/categorized the images which is useful... it integrates with TinyMCE, FCKeditor, and maybe other editors as well... Image module also has a built-in basic image gallery feature... although Image Assist can place images within content on the page, it shows only "placeholder" shapes where the images will appear until you save the page).
• Asset module (handles images as well as other media files and has a versatile number of options as well as one of the better user interfaces... it can create alternate image sizes using the popular ImageCache module... it integrates with TinyMCE editor, though I don't believe any others yet... it shows image examples directly within the editor... it's also not Drupal 6 compatible yet).
• Inline module (uploads images as "file attachments" to a certain page, and uses special tags to place them within the content of the page... it is not as easy to use, and does not create alternate image sizes automatically for you).
• Image Picker module (I have never tested this one yet, so cannot say if it works).
• If you don't need images "within" content (but rather before, after, adjacent to, etc the text of the page) then the best solution is CCK and Imagefield module paired with ImageCache module.