Setting up an image plane

How can I set up an image plane in Blender 2.5? I knew how to do it in 2.49 but it seems like the view menu options have changed a bit. Help me out please.

Press N in the 3D view to toggle visibility of the Properties panel. It should be on the right hand side of the window. At the bottom of the panel is the Background Images property where you can add an image for different views.