Did you know that image files can be referenced into your drawing?  Yes, that's right, a simple  image from a digital camera can be placed and scaled into your drawing.

Use the IMAGE command by entering IM at the command line.  Pick the attach button to select an image file from the Select Image File dialogue box. 

The next step is very similar to inserting an external reference or block.  In the Path Type area set the listing to No path.  This selection requires you to have the image file in the same directory as the drawing file, so make sure to move the image file into the current folder after the insertion is complete.  Check the Specify on screen check boxes for Insertion point and Scale.  Pick the OK button.  Select a spot to place your image and then move the cursor away from that point to scale the image.

The image border resides on the current layer when you inserted it.  The border is the key to moving or scaling the image after it is inserted.  If you do not want the border to print, but still want to see it when working in the drawing, use the IMAGEFRAME command and set it to 2.