Hi,
I have also problem with figures.
I am able to add a figure with the following command
\begin{figure}
\centerline{
\mbox{\includegraphics[width=15.00cm]{picName}} % Don't add the suffix, like .png!
}
\caption{My picture}
\label{myReference}
\end{figure}
You should try this Srikanth.
You can also make a reference to the figure with the command \ref{myReference}.
I have a problem with the location of the picture, but
this page seems to be right source for that information, so I won't post a question (yet).