See the "XXXXX".... that's where the pic's address is placed...thus for your pic, you'd have .... "http://images.animfactory.com/animations/food/beverages/man_enjoying_coffee_mug_md_wht.gif"
Make sure you put the exclamation marks in open and close..they are important.
...and at the beginning of the code(ie. before IMG), you need to place a (<) ...without the brackets, and at the end of the code (ie. after .gif") you need to place a (>)... again, without the brackets. Make sure to leave no space between these two symbols and the code.
If you do these instructions, the pic should appear as follows....
