First you need a free image hosting service (Flickr, 4FreeImageHost.com, ImageShack , etc). Personally I like to using Flickr for my images.
After you have your image hosting, right click and save the Blogging Women image to your computer.
Next, uploaded the image to your free image hosting service. You will then receive a URL for your image.
<a href="YOUR BLOG URL" title="YOUR BLOG TITLE"><img src="YOUR PICTURE URL" alt="YOUR BLOG TITLE" /></a>
Follow the steps below to make the necessary changes to the above code:
Insert the URL of Blogging Women beginning with http:// where it states "YOUR BLOG URL". So you would insert http://bloggingwomen.blogspot.com
Insert your image URL (from you free image service) where it states "YOUR PICTURE URL"
Insert the title of your blog where it states "YOUR BLOG TITLE"
For the ALT tag you can add a description for the image. In this case you can add whatever you like as its just describes the image. Some things you can put in that section are:
"Blogging Women" or "Women's Blog Directory"
After your finished, click save and check your blog. If your want to center the image in the sidebar, you can always add a
Hope this helps. If you have any problems let me know.