First dumb question regarding images, and also quickbooks

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http://forums.oscommerce.com/viewtopic.php?p=228185#228185
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1) I am editing the site using a browser on a different machine.
I added a catalog item.  I saved an image to my local PC, and when I added the item, clicked browse, selected the image, and saved.
The image does not appear on the site or in the settings, for that matter.

I am guessing that you have to first upload all your images to the server, and when it says "browse". you are actually browsing on the server?
xcart lets you upload from a client browser, from the server, or from a URL, which I thought was nifty.

2) xcart has Quickbooks integration.  I haven't used quickbooks at all, so I'm not sure if I need it for my business, but I am wondering if osC has the ability to hold cost information, so you could for example run a sales report with margins, etc.

I'm trying to read the docs but there doesn't seem to be a lot, besides the forum archives.  If I've missed some additional resources, please point me to em.  Thanks!