Download CKEditor and decompress it into ..../sites/all/libraries/directory. So the actual library can be found at ..../sites/all/libraries/ckeditor/ckeditor.js
Download and decompress jQuery UI.Rename development-bundle/ directory to jquery.ui and move it to ..../sites/all/modules/jquery_ui/ directory.
Go to Administer->Site building->Modules and enable WYSIWYG Image upload and ImageAPI GD2.
Go to Administer->Site configuration->Wysiwyg.
For the Filtered HTML, select CKEditor 220.127.116.1192 editor. Click on the Save button and then on the Edit button.
Click on the Buttons and plugins section. Check on any buttons that you would like to appear on the rich textarea. Note: Don't forget to check Image uploading. With this button enable, users will be able to upload their image to your server. Then on the Save button.
>Go to Administer->User management->Permissions and check use wysiwyg image upload for at least authenticated user.
Go to Administer->Site configuration->Input formats.
For Filtered HTML, click on the configure link and check Drupal Wiki inline-images filter.
Click on Configure again and add <img> in Allowed HTML tags.