There are two common ways to display images in WidgetWeb.  The most common way is to use an Image Widget like the one below this text.

The other way is to embed the image in a text widget.

Embedding the image in test allows you to wrap text around the image, and control the alignment of the image in relation to the text. It also allows you to use the image as a link - but this will be added to the Image Widget in a future release.