how to insert an image?

[Galaxy01]

I am trying to insert an image in my post, when I click the 'insert an image' icon, a drop down window appears but there is no option for me to select the image file from my PC

Please help.

use the attachment option from the new reply or full edit options for that (attachments are not available at quick edit or quick reply) which you can then add to the post.  The insert image is only for online images via a URL

But, how / where to enable 'full edit option?  
Have been searching around, no.... 
Hidden some where ...