ColtMan, just type [img][/img] and paste the link location in between.
Use a site like photobucket to upload them to and get a link(right click the pic and copy image location).
After you get a link it'll look something like this:
http://i252.photobucket.com/albums/hh39/arturotostado3/KoolAid1.jpg?t=1249783943

Just delete the last part (?t=whatever) and put it between the image quotations.
[img]link[/img]

And that should do it.