Difference between link, image, etc.

I’m still trying to learn the ropes on this wonderful plugin. In the plugin settings, I have the post formats all set to “status” because I’d like even my own image and video uploads to appear in that type of format, where I can add an intro. It seems like if I set “image post format” to “image,” I’m limited to just an image. On the other hand, while the image PF is set to “status,” I’m getting some distorted images in the status widget display. Any suggestions?