You can create new folders in the Stories folder and access images stored in them using the {mosimage}.
See attached image.
The member formerly known as Roland Deschain After your question is solved, please Edit your original post and choose the Solved message icon, thank you!
I use JCE editor and their image manager plugin. It's the only way to go as it makes uploading the images much more intuitive - just browse for a picture and upload it when building your page (you don't have to worry about inserting tags etc.). The built in methods Joomla comes with by default for putting up pictures is really lacking. I don't think JCE is available for 1.5 though.
A really quick workflow is to FTP all your images to a folder first and then you can skip the browse your hard drive for an image step. You'll be able to browse the folder on your server (using JCE Image Manager) and just click the file names to insert. ::I::
For 1.0.x I'd recommend JCE too. It comes with a very good Image-Manager, like ihadmeavision already described, and it has a modular plugin-system, so if you i.E. use Gallery2 later on, there's a JCE-Pluigin that lets you select Images from your Galleries to insert into Content too...
A plug-in for Gallery2? Holy s%#t, thanks for the heads up Chris, I've been using Gallery2 and I didn't even know that. I'm gonna check it out right away.
::March::