There is now an link to add a picture below the main text box when you create a post. It is simple and easy, and uploads to another database.
You can also link to these images elsewhere in an e-mail or other webpage.
1) When starting new thread or posting reply you see "add image to post" link below textarea:
2) Click that link, popup will appear where you should select image and add description to that image (description is optional):
3) You click "upload it" link, image is uploaded and bbcode is automatically inserted in post:
4) You click "submit" to submit post and thumbnail of image appears in post (just like thumbnails posted above):