There are three ways to post pictures now.
There is the oldschool way of using the IMG tags:
Make sure the image is on the web somewhere (Picassa, Photobucket, etc...)
Left Click, and get the URL of the image directly:
Then paste the URL between the image tags:
And post it.
get the URL of the image as above.
Click the Add a Picture Link:
In the window that pops up, click on the "From URL" tab.
Paste in the URL, and uncheck the box. Don't ask why, just do it.
Hit OK. You will notice that it basically did the hard work of adding the IMG tags to the URL for you.
Hold on, I can only upload 5 images per post. Let me see if I can add more to a reply.