Background Images

I’m confused on how to set a background image. I’m using Blender 2.5.2. My steps are

  1. Press n.
  2. Check background images
  3. Press the down arrow and press “Add Image”
  4. Press the white down button and press “Open”
  5. Select the image.

Now what would I do?

Select the view axis (top, front etc.)
Go to that view (Num 7 top, Num 1 front, Num 3 side)
Make sure you are viewing in Ortho mode (Num 5)

It works. Thanks.