I think the thing you're missing is that although this site appears to accept attached photos, that part is a joke at best. Forget using that. The photos you see here are uploaded somewhere else and merely linked in posts. Photo hosting sites give you the whole IMG code so you just copy and paste in the text field then bam theres your pic. Linking to pics from other places on the web (not photo hosting sites) can be done using the "from url" tab found next to the "from computer" tab on the add photo box. IF you un-check the "reference locally" box, and if the pic is not somewhere that you have to log in to see it.
You can post up to 15 or 25 pic links in one post, I forget which. But you will never need to click that "insert image" icon to post your own images if you UPLOAD them ELSEWHERE and set the privacy to public.
