SO fiddle
Test Fiddle mainly for SO Questions
by Nick Craver
HTML
<link rel="stylesheet" href="http://ajax.googleapis.com/ajax/libs/jqueryui/1.8.4/themes/overcast/jquery-ui.css">
<div id="album">
<ul>
<li>red</li>
<li>green</li>
<li>blue</li>
</ul>
</div>
JavaScript
$(function() {
var pic = "http://jqueryui.com/demos/droppable/images/high_tatras3_min.jpg";
$("<img />").attr("src", pic).wrap("<li />").appendTo("#album ul");
});