First way to post images to your weblog:
when edit your post, open another browser, drag-drop pictures to the editor box. The picture must be online, can not be in your harddisk.
switch to html editor mode first paste the code <img src='image-address'/> change image-address to the real img address like http://www.abc.com/abc.jpg .
Practise it in the http://blog.bcchinese.net/guest blog, there are some samples.
If you click the "Image" button, a window will popup and please ignore the "browse" button, it does not work.
About online picture storage
Most ISP or school will give you some free web space and they are the best. If it 's not available, try msn photo album, it's said they are good, but I never try it.
Yahoo photo album is bad, only yourself can see the picture if you post it here. But of cause just post the link of the photo album is OK, and others can find where is the pictures.
If you take the photo by yourself (you own the copyright), you can upload to this forum. http://www.bcchinese.net/ShowForum.aspx?ForumID=5 . Update
Never try this, but may work