I do it differently. I have a Photobucket account that I upload to.
When you are done writing your post, pull up your picture in your Photobucket account in another window and click on the window that says "direct". That will copy that window.
Come back to the Quilting board post and choose the little picture square from the icons above the space where you write. A box will show up that says "Insert image". Click on "Insert URL" and then click on the empty space that shows up. It will fill in with your Photobucket picture. Press enter and you're done.
Clear as mud?
Watson