Yes, you can link between pages in Drupal. It's the same as not having Drupal, except the name may be weird if you're not using the Path module (URL Aliasing).
The biggest mistake people make is not knowing that there needs to be a leading slash ("/"). Omitting this will probably cause a "404:Page not found" error and, depending on which browser you're using, additional problems, like being logged out.
For example, if your home page on a site is node #4, a link to it would look like this: Home, but with URL aliasing turned on, you can also code it like this: Home
A picture could be embedded with this tag:
http://drupal.org/book/export/html/124931
