USING UPFRONT W/LUKE & SARA

Hi,
I apologize but I've looked the first UPFRONT tutorial the past 2 days and I'm unable to add an image according to the instructions. When I drag an image over I don't get the upload or media option. When I do the whole right pane of the UPFRONT blurs over. The same thing occurs when I try to swap image on the logos on the starter themes.
I've tried everything I could think of. Admittedly, it could be my TBI brain isn't processing info on the screen right. I just validation that it's me and not my perception.

Thanks,
Byron