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ArcGIS Online is not an option for hosting your images. You will need to use some other photograph storing site. Essentially, you need a URL to your image that you'll reference in a field of your shapefile. This will allow you to display the image in a popup window when you click on a feature on the map (I assume this is your goal).
Check out this post for some tips on configuring the popup window to display your image.
Thanks for that. I have already uploaded my photographs to Flickr and I plan to link to them via the pop-up windows as described.