Image

Use First Image as Featured Image
If any images are attached, the first one will be the featured image for the post. As of 1.7.5 the featured image will not be included in the post content.
Include Featured Image in Post
Should the featured image be included in the post.
Automatically insert image gallery
If any images are attached, they will automatically be inserted as a gallery
Gallery Link Type
Allows you to specify the link type used with the gallery. (requires 1.6.18 or above)
Image Location
Location of attachments if using ‘plain’ format. Before or After content.
Generate Thumbnails
Some hosts crash during thumbnail generation. Set this to ‘No’ if you have this issue
Start Image Count At
For use if using “Image Place Holder Tag” below.
Use custom image field for images
When set to ‘Yes’ no images will appear in the post (other attachment types will be processed normally). Instead the url to the attachment will be put into a custom field named ‘image’. Your theme will need logic to display these attachments.
Image Place Holder Tag
For use in ‘plain’ messages. The code for inserting an image. I.e. put “#img1# in your email where you want the first image to show. See also “Start Image Count At”
Image Template
Choose a default template, then customize to your liking in the text box. Note that this template are only used if the “Preferred Text Type” setting is set to “plain.” Sizes for thumbnail, medium, and large images can be chosen in the Media Settings.

{CAPTION} gets replaced with the caption you specified (if any)
{FILELINK} gets replaced with the url to the media
{FILENAME} gets replaced with the name of the attachment from the email
{FILEID} gets replaced with the ID of the media
{HEIGHT} gets replaced with the height of the photo
{ID} gets replaced with the post id
{LARGE} gets replaced with the url to the large-sized image
{LARGEHEIGHT} gets replaced with the height of a large image
{LARGEWIDTH} gets replaced with the width of a large image
{MEDIUM} gets replaced with the url to the medium-sized image
{MEDIUMHEIGHT} gets replaced with the height of a medium image
{MEDIUMWIDTH} gets replaced with the width of a medium image
{PAGELINK} gets replaced with the URL of the file in WordPress
{RELFILENAME} gets replaced with the relative path to the full-size image
{THUMB} gets replaced with the url to the thumbnail image
{THUMBHEIGHT} gets replaced with the height of a thumbnail image
{THUMBNAIL} same as {THUMB}
{THUMBWIDTH} gets replaced with the width of a thumbnail image
{TITLE} same as {FILENAME}
{URL} same as {FILELINK}
{WIDTH} gets replaced with width of the photo
{ICON} insert the icon for the attachment (for non-audio/image/video attachments only – e.g. PDF or DOCX)