Example of inserting a link to another post on a blog.

1.  Open your blog in view blog mode.  You can find the view blog button on the blogger.com dashboard.
2.  Click on the title of the blog post to which you wish to link.
3.  Copy the web address of the blog post to which you wish to link.
4.  High light the text you want to use as a link; then, click on the "Link" button in the post editor.

eg.  Example of link

That is it.

Example of how to insert an image into a blog.

The image above was taken from: http://cf.ltkcdn.net/cats/images/slide/89805-538x500-Fat-cat-1.jpg

1.  Find the image you wish to upload.
2. Click on the "Insert Image" button in the post editing box.
3.  Insert the URL for the image you wish to insert.

That is it.