This how to guide does not cover making, editing or uploading the video to YouTube.com that is covered at www.google.com/support/youtube
After you have uploaded your video to YouTube.com you will see a link called URL.

Copy the URL to your clip board.
Edit or create your blog/parent profile.

Once you have the cursor where you want the video, select the red YouTube icon from the tool bar.
Paste the URL into the pop-up. It must be in the following format. http://www.youtube.com/watch?v=Crk97pLTFzg and press Insert.
You can add images to any location that has the toolbar containing the tree icon. Create a new blog or parent profile or edit a existing one and select the tree icon.
If the image is hosted on another website you can enter the "Image URL" or select the icon to the right to upload a image from your computer.
You now see a list of image you already uploaded. Select "Browse" to upload a new image.
Locate the image on your computer and select "Open"
Now select "Upload File" and you will transfer the image to your account. Select "add" on the image you want in your post.