Direct upload of image files into the editor?

I wonder if somebody can point me to some documentation of achieving direct upload of images into CKE. What I mean is adding a typical browse and upload option to the Image tool instead of requiring people to add an image URL.

Our server is not PHP or very standard, so I can't use some of the solutions in the configuration builder. But we did do this for our old fckeditor. It involved uploading the image to a temporary location at our site while editing, then after the post was made doing some post processing. Anyway, we have a working solution for the fckeditor we've been using for years, and it seems like a reasonable solution given the way our server works, so I'm looking for some way, if possible, of adding a "hook" from the new CKE we have into our existing solution.

I'm not sure where to set it though. People have been helpful here pointing out documents like this. I haven't run across any, so if anybody has any pointers, please let me know.

Thanks,

doug