The Image Module produces an image from a relative (local - like /default.aspx) or absolute URL ( like http://www.xd.com.au) The image file does not need to reside on the host system when using the absolute URL method.

Height and width attributes for the image can be entered, which provides adjustment of the image dimensions.

Sometimes the Text/HTML module will be a better option to handle your images as it allows you to link, style and add text around the image, whereas the images module only lets you add an image, with little else you can do with it.