When inserting images in the design document, the location of the image can be specified directly in the SPS (by the SPS designer) or can be taken or derived from a node in the XML document. How to specify the location of the image is described in the section Image URIs. What type of images are supported in the various outputs are listed in the section Image Types and Output.
Images can be set in the Properties window. Do this as follows. Select the image in the design. Then, in the Properties window, (i) select image in the Properties for column, (ii) select the required property group, and (iii) within the selected property group, select the the required property. For example, to set the height and width of the image, set the height and width properties in the HTML group of properties.