On Hubpages you can't embed them in the text modules. You can add a new photo module and click the arrow button to shift it to the right, then build up the text around it that way.
To add to what calculus-geometry said, a couple of other things about photo capsules. You can place a photo capsule to the right of a text capsule, but you can't place a photo capsule to the left of a text capsule. Also, you can not place 2 photo capsules side-by-side.
If there is a specific position within your text at which you want a photo to appear, you will need to break up your text into two capsules at the appropriate position.
If you want your photos spread out throughout your hub, you may need to use several capsules for your text.
Thank you for the additional info............I did discover it myself by accident but I appreciate your input
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