GD Questions: Please help.

Greetings fellow PHPers. I am learning basic GD functionality and I have a few YES/NO questions to ask. This should only take a few seconds of your time. PLEASE HELP! So far I have seen several tutorials on creating graphics on the fly. In each example the either send the image (by itself) to a browser (using the HEADER line) or they save it to a directory. Can I send an image to a browser along with other HTML and PHP information, or does my image have to be on it's own. If I want to send my image to a browser with other HTML do I have to save it to a file first? Does my directory that I am writing to have to have "write permission" set to TRUE for me to create an image file? and if it is NOT, will I get an error something like... Warning: imagejpeg: unable to open '/images/test.jpg' for writing! Can anyone show me a chunk of sample code or function that shows how I can embed my images created on the fly into my normal HTML files. As always, thanks in advance my friends. - NorthBayShane