Fancy Insert provides a more user friendly interface for inserting images into specific positions within node content.
Fancy Insert converts the cck imagefield widget into a draggable floating box which is positioned above the text area. By clicking on an image, the image is inserted into the text area at the position of the cursor.
This functionality is useful when creating content with many images and text.
The Fancy Insert module can be configured per imagefield. Go to Administration -> Content Management -> Content Types and click on "Manage Fields" of your Content type. Then edit the settings of the image field that you want to configure. And finally enable fancy insert by clicking on: "Enable fancy insert widget".