Problem!!! Can you solve it Please......

Hi Friends.
I am creating a website. And i want to use external Logos and images (Produced by different softwares and websites). But i dont know what to do after creating them. In instructions there is always written,

1) Download the Files and upload it to your web server,
in the same directory as the HTML files that will display the menu.

2) Paste the embed code into your web pages to display them.

But i dont know its meaning. Where should i upload them. Where is my Webserver directory.
And how and where should i paste the code.
and can i do this to my blog also.?
Please help me if you knoww..................