Only users with Sys Admin permissions can activate Rich Text within your system. Once activated, any user can embed an image in any issue they can see. Embedding images into Knowledge Base articles requires the Can add, edit and delete Knowledge Base articles permission.
The message Parameters successfully updated will display when the update is complete. Rich Text options will also now appear for the Description and Note fields on Submit/Edit Issue, Add/Edit Quick Pick, Add/Edit Recurring Issue screens; the Add Note field on Add/Edit Escalation Rule screens; and the Article field on Add and Edit Knowledge Base Article screens.