Are you creating your text using the TYPE ON A PATH tool? This makes the text follow the path on which you started. Then grab the little "T" and move it, the text should move with it, while clicking and holding the T move your mouse toward the center of the circle, the text should then flip to the inside and not be upside down.
You need to upload a picture to a server. I use my own server space, but there are also numerous free image hosting services. One I see used a lot is Imageshack, and there's one called Pixentral. Google them.
Then, you need to link to the image from this site.
Use this format (remove the #, it's there only to break the html):
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