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[Main menu>Tools>Settings…>Connection]

Select where to store your pictures. In case images fails to upload try to change this setting first. Keep you attention to one special host “MyComputer” it actually will not upload images to some internet server, but instead will place images to selected directory on you computer. It works like preview. So you can jus resize, add boarder and watermark to your images.
Note: Then using “MyComputer” don’t forget to set local path for images. You can do this by clicking on “Host settings…” button.