below the message box you'll see a file upload option. click on "click here to upload". browse for your pic on your computer, select ok. when upload is done check the box that says embed picture in post. that's it.
I kept the cape but haven't decided on whether or not to mount it. I've got 2 other mounts already that are bigger. To me it's not as big as my other ones, which is why I don't feel like I have to display it. If enough people think I should, perhaps I will mount it.