Best way to put images in wordpress?

lets say i have a few picture images in my posts, should i make thumbnails so that when you click the image, it opens a new page. Like this:





Also does anyone know how to do that in wordpress?

Or should i just shrink the pics down and make them non clickable?

this is for a blog type site btw, and those arent my pics, just examples

Go to new post - click on Upload/Insert icon - upload all the images for that post - now click on From Url tab in the same window (the one for uploading pics), now new tab Gallery should appear - choose options and insert category, you will have exactly what you want.