Here's another way of doing it.I came across it a week or so ago and find it much easier and faster to use than photobucket.No need to sign up for an account or anything.
1. At the top of this message box click on host image button.
2. Make sure file is checked,then click browse.
3. Find the file you want in your folders.
4. Once selected,get the file size you want,I usually go with 640 px.
5. Then click the host button at the bottom.
6. When it uploads,go to the middle section (IMAGE:) then click on copy,or you can double click and right click / copy.
7. Then come back here and right /click paste.