Newbie question: saving jpeg files in indesign document

hi there,
i'm rather new to indesign and i can't get this thing to work:
whenever i place a jpeg image (or for that matter, any other image format) into an indesign document and later move
the jpeg file to a different location on my harddrive and then reopen the indesign file, the image is all pixeled. it seems like the image
isn't saved inside the .indesign file, but is more of a referal to the file on my hard disk.
is it possible to embed external files (like jpeg) into the actual indesign document and save them within this document?
i'd be gracious for any help.

Grant's answers are correct. You SHOULD use linked images and you should update them on the Links panel.
There are specialized reasons it might be necessary to embed an image, but in general it's not a good idea: (1) It makes the files unnecessarily large, (2) if you make changes in the image, it can be updated in the InDesign file.

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