Set up:

1. Must have a .zip or .rar compressor.
2. Willingness to learn.
 
Steps:

1. Save the picture of choice to your desktop.
2. Make a new .rar or .zip folder on your desktop.


3. Add the files you want to hide into the .zip or .rar
4. Click start menu, run, cmd.
5. In Command Prompt type cd "desktop" with the quotation marks.
6. Now type in copy /b picturename.jpg + foldername.rar outputfilename.jpg
( If you use .zip then: copy /b picturename.jpg + foldername.zip outputfilename.jpg)
7. Now there should be the outputed file name with a .jpg extension on the desktop.
( Do not close Command Prompt just yet )
8. Double click it to open the picture and check it out.
9. When your done looking, and want to view the hidden files
Type: ren outputfilename.jpg outputfilename.rar  or zip

Now you're done!
 
A quick info-fact:
 
With this technique of hiding files in a jpg you can send this to anyone and they just
have to rename the file extension to .zip or .rar.
With this technique the Al-Qaeda operatives were able to send info to others
secretively.