In the e-mail window please make sure you have clicked on the "Save" button, after that you can click on the image icon located in the middle of the window and select the image you want to add.
I would like to know what BackgroundHALShouldPause does, and how to use it. While it's listed in the HAL Primitives report, it is not used in source code and it doesn't appear in the LMS HAL...