Insert image
(i) Click the Insert image button on the Toolbar. 
(ii) From "insert image dialogue box" choose an image(jpg,gif or png only).Click "open'.

(ii) Now click "timeline tab". 

(iv) Click "Add Effect" button to open "effect drop-down list".

(v) Choose any available effect from drop-down list. Enter desired values. Click"OK". 

(vi) Now test movie. 
Remember: For image, only few effects are available but for text you can choose any effect. 
You can apply following effects on an image.