I type text, hit return and enter the IMG code. The first IMG is the beginning of the link and the one with the slash closes the link which returns you to text. All you need to do is put in a carriage return (enter) and it breaks up the line. I've noticed that Tom Young doesn't do this and sometimes it is a little hard to follow because the text ends up way down off to the side.

I like to enter two carriage returns after the [ /IMG ] to space the text from the image but you can use just one .

BTW, I use Photobucket to host images which is free and they have a way to copy the IMG code directly so I don't have to type it out, just paste it in here. They make it easy.