If you mean your own artwork, then you'd take a picture of it, upload it to your computer (make sure you know where you're saving it), then select Insert > Picture in Word, browse in the location where you saved the photo, click the picture, and insert. If you mean an image from the internet or something, you can just save it to your computer and basically follow the rest of the steps above.
I liked it for the simple inserting of visual effects for creating newsletters. Pictures do enhance communication and the ease of using a word document and gathering an image made this task easy. Now having to go outside of my document to find the extra spice my documents need makes this less fun. I have always used animated images that were less than artistic but were entertaining. Like others I will miss this service, but I understand progress is not always comfortable.
There has been talk about removing Microsoft Office completely, since OpenOffice and Google has free "equivalent" products. My school district has already removed Microsoft Office from classroom student computers. Only teacher computers and computer lab computers have Microsoft installed. The future of Microsoft Office looks bleak! Their motto must be, "One step forward, two steps back!"