Not asking about profile but editing salutations etc.?

Just upgraded to Windows 8 and re-installed Windows Live Mail and cannot find Options in order to add a signature

I have Windows XP. I'd like to know how to put a small attachment photo for my signature at the bottom of my email page. If possible I'd like to

select a couple photos so they'd alternate on my emails at random. Is this possible?

when replying to email in Windows Live Mail my signature ie name and address appears after the email I am replying to instead of after the email I am wrting

 

NOTE: The title of this post was edited to help customers find this topic easily in their search results.

Unable to create folders ,signature ,rules or any other user options in(windows 8) Hotmail or Outlook/live.  To create new folders and rules I am having to access via a browser on my old windows 7 and XP machines. Neither can I directly access the Hotmail calender from within the Mail App. The only options that are shown are when I right click an e-mail and they are; "pin to start-move -mark as unread or, synch" on the bottom bar. The top screen   shows only "move,reply or delete". I can't find contacts but I know they are here.  Win key + i takes me to PC settings and personalisation and other ultimately non relevant areas. 
To make it clear I cannot mark mail in any way, I cannot set any rules, I cannot create new folders, I cannot create signatures. ,However these options  seem to be  visible and obvious from machines running windows 7 and XP. Does anyone know where these are hidden on win 8?

Is there a way in hotmail that I can add my name as a "signature" so everytime I send a new email to someone my name shows up at the end of the email