The picture MUST be on the internet for you to post it. If you right click on the above picture you can "copy" the address and "paste" it inside the IMG tags.
So right click the picture and you get this....
http://www.scatteredgenius.com/wp-content/uploads/2008/01/drevil.jpgTo post the picture you can click the button on the "Post Reply" for an image. Its the first button in the second row, just above the
icon
That will post the img tags that look like {img}{/img} but with [] instead of with {} or you could just type out those tags yourself
Then you paste your address in the middle of the tags like this....
{img}http://www.scatteredgenius.com/wp-content/uploads/2008/01/drevil.jpg{/img} ....again using the [] instead of the {}
If its a picture that you have saved on your computer you first have to upload it to a server that stores pictures.
Photo Bucket is free and pretty easy to set-up. Once you have an account there, click the upload button, browse to the location you have saved the picture at on your computer and click ok. PhotoBucket also gives you the option to click the address AS an img tagged address so you don't need to type it in yourself.
Good luck !