For almost all purposes think of them as an inline element with a width set. Basically you are free to dictate how you would like images to display using CSS. I generally set a few image classes like so:
img.center {display:block;margin:0 auto;}
img.left {float:left;margin-right:10px;}
img.right {float:right;margin-left:10px;}
img.border {border:1px solid #333;}