I can use images to display text on my web page.

    TRUE

Images containing text can easily be read by human visitors to your web site. On the other hand the text in images can not be seen by the search engines, so none of that text is used by the search engines to index your web site. The use of images or flash movies to display text will allow you to use fancy fonts and colors. This is ok for navigation buttons and other small images, but blocks of text should NEVER be in images if you want the search engines to index your site based on that content. In addition, if you need to change the text, it is much more expensive to change an image than a block of text.