Inline embed feature (where the pic is in the message itself) is available in ZCS 6.0 > upcoming ZD 2.0 will be from that codebase.
vs in ZD 1.0.3 (ZCS 5.0) currently only possible to insert via URL:
Obviously that 'put in a docs folder' directions only works if there's a ZCS account where you can create a pubic documents folder, so some link to an 'external image hosting site' like imageshack, tinypic, etc.