Can someone please explain how the photos work...?

You cannot upload photos within discussions until you have a number of 500+ posts. However, you can upload photos within your interests, assuming that you have any, set here in myLot, and earn money from that. Thare is a limit of approx. 25-30 photos / day / user and the amount is around 1-2 cents per photo. Although there is no fix amount, i was sharing from my experience - i uploaded 27 photos and earned approx. 50 cents, you do the math. Hope this clears some of your doubts. Wellcome here and keep up the good work!

As I know you receive 5 cents/photo. After you write your message scroll down and on the left side of the page you will see a button 'Upload Photo'. From here I think you'll manage;)