I would get a good text editor instead of trying to use Dreamweaver to edit templates. The one I use is PsPad,
www.pspad.com. Its free, and works for php, html etc. as well.
Anyway, yes. you would just add something like
Code:
<br />
<img src="{$ImagesDir}/Image.jpg" width="150px" height="50px" alt="Image Description" />
<br />
where you want your image.