After hitting "post reply" at the top or bottom of the page, I use the "browse" button and browse to where ever I have the image saved. The image thing didn't work for me either. Only time using this method has not worked is when it was some strange format or I tried to attach more than one image at a time.
Of course this assumes you have the image saved somewhere either on your hard drive or a disk you can browse to.
I dunnno, I'm no expert, but it didn't appear like there to me. Looked more like maybe New Orleans or Europe, maybe even South America? Oh well, whadda I know.