The pop-up window that displays for you to attach photos should also allow you to drag and drop them into the area where you select the images from your computer.
We do not supply code for a photo of the day from files stored on your server; This would be a script you would have to contract to be developed as a sidebar island. The random gallery image content island that floats around this site utilizes our internal gallery structure which is why it is on so many sites as it extends our gallery feature.