You can add an image or a scanned item (which, by default, is saved as an image by scanners) file to your LiveText document in a way very similar to adding attachments.
1. Open the document you need to insert the image/scanned file in.
2. Click the edit link for the section where the image needs to be posted.
3. Next to "Images" below the editing window by the attachments option, click on the edit link.
Browse for your image file.
NOTE: Make sure it is in the correct format and is in the right size. Make any edits to the file before you attach it in LiveText as you cannot make the edits in LiveText.
Attach your image file (don't worry - it will appear as an image and not an attachment)
Finish the process.
4. Click [Save] button below the editing window and then click Finish link above the editing window to exit the editing mode and go back to your document.
Source: http://www.coe.ilstu.edu/livetext/FAQs/StudentFAQs.htm