How do I add pictures to my list?

I'm working on a list and I've figured out how to add people to the list and have their little thumbnail appear next to their name but I can't figure out how to add big pictures for each entry. I find a picture I like and whenever I press "add to list" the list that I'm working on never shows up so I can't add the picture. What are the steps that I have to take in order to have my list show up where it says "add to custom list" next to a picture I want to use?

Go to the list item, click Add note, Paste the image id into the edit window, then Save.

Please read "Inserting listal images" on this help page for details.
www.listal.com/help/html