First you need to upload the pics to a server that allows direct linking (eg. fujifilm, coolconnect, etc.). Then when you are editing your post, just click the IMG button on top and fill in the URL to the picture. Look forward to see your shots.
Ok 2 things:
1. Please resize your pic to 700 or less on the wide side. I always uses 550 for shots from DC and 600 for shots from film.
2. Try again with the IMG button. The pic will appear in the post. While editing, just click the IMG button at the vB Code section, then fill in the URL to the pic in the pop up dialog box.
When you are editing the text, look above the editing box. There is a "vB Code" section. The IMG button is there along with other buttons. It allows you to link to your pics by automatically embedding vB codes to your post.