Yes you can store images there.
You need to get rid of Arbor. It is a terrible waste of money, for a site that is not secure and is worthless.

Inside Neocities:

https://www.geocities.ws/bkbrat/FM1.png

https://www.geocities.ws/bkbrat/FM2.png

You can EDIT from the drop-down box on the upper right or the big Red Edit Button.

https://www.geocities.ws/bkbrat/FM3.png

I only have two folders there so far.Pages and images.
https://www.geocities.ws/bkbrat/FM4.png

The little box left of the word Home gets you here.
New File is the HTML box for making web pages.
FOLDER is like making Folders in all other web servers.
Uploading is very fast here.