In the element tree view window, select paragraph and press element button img
to create new image element.
In attributes window press src ellipsis button and browse to the image you want and select it. You can see original and bitmapped image on the right side of the selection dialog window. Choose one of dithering algorithms for the best dithering result from combo box or click Preview button and then just click on image to choose appropriate dithering. Click Open.
If the image type you select is not wbmp, editor will prompt you that it needs to be converted to wbmp. You can then choose destination wbmp file to convert it.
Width and height attributes will be set to original image width and height in pixels.