Textile is a markup language that allows you to style text without having to know complex HTML. You can learn more about it here: http://en.wikipedia.org/wiki/Textile_(markup_language).
So anywhere you can enter text into the website, you can use Textile.
Here is a reference of supported Textile elements.
h2. Header 2
h3. Header 3
This is italicized
This is _italicized_
This is bold
This is *bold*
To embed an image:
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