link-image, for both - including an image and creating a link - exists a html-tag. Your work is to combine them:
<a href="http://www.linkme.com/">some text</a>
<img src="someimage.jpg" border="0" />
<a href="http://www.linkme.com/"><img src="someimage.jpg" border="0" /></a>
My suggestion would be to use some wysiwyg (what you see is what you get - like Frontpage) editor, that usually saves you quite some worry and time if you're not familiar with the html markup language.
