I am trying to upload an image (jpeg or similar) into a map. It can be on the layout view or data view. I am using ArcMap 10.1.
On the top menu bar of ArcMap in the Layout View, click the Insert menu, and then click Picture. The properties dialog for the picture element will give you a number of options, including a useful option called "Save Image as Part of Document" which stores the image as part of the map document:
Best Luck with this.