Make sure you are in the composer for your campaign. From your Dashboard, click Edit under a campaign, or Compose on the right.
The fakepath filepath is for your security. It's not an error, and Email Marketing knows exactly where to upload your image from. But that filepath, and any details about your computer drives, are not saved or transmitted anywhere. Keeping you safe!
You can leave this page, at this point (even before the image has fully processed), and your image will still be available in your gallery, when you come back.Success! The image is in your sidebar to use as needed:
Here are a few things to keep in mind, about the images you are uploading: