If you want to display an image on the sidebar, here is how.

• Prepare an image that will be displayed on the sidebar. Upload the image to the Library (please read “Uploading Images to the Library“).
• Find out the URL of the image (again read “Find Out The URL of an Image“).
• Now select [Appearance] and click [Widgets] option.
• Select  Text widget by clicking [Add] on the widget. Now the widget has moved to right pane. Click [Save Changes] and click [Edit] on the Text widget.
• Fill in the bodytext of the Text widget with the folowing code (do not press Enter when writing this code): <a><img src = “http://www.DEF.com/pics.jpg” width =”144″ height =”56″ /></a>.
• Replace “http://www.DEF.com/pics.jpg” with the URL of your image (in the Library). Change the number of width and height according to your image width and height (in pixels). After finishing the replacements click [Done] and [Save Changes].
• If you want the image displayed on your siderbar has a link to a page or website (let’s say linked to http://www.ABC.com/) the code will be: <a href=”http://www.ABC.com/”> <img src = “http://www.DEF.com/pics.jpg” width =”144″ height =”56″ /></a>. So replace http://www.ABC.com with your own.

Now visit your blog, the image should be displayed on your sidebar.