Okay, lets see if I can explain how to do it (I'm used to just simply doing it).
Your pics have to be stored online, which you have done in the media section.
You click on the pic link bringing up the pic.
With the cursor on the pic you "right click the mouse", then left click on "properties".
Then right click and copy the URL of the pic.
One of which was,
http://vca2.viperclub.org/gallery/data/500/267TMP7-med.JPG
Then when you're posting there are buttons to simplify using the UBB code,
Instant UBB Code
URL Email Image
List Start List Item List End
Poll Start Poll Option Poll Stop
Bold Italics Quote
Code
Click on the Image one,
paste the URL of your image, click on okay and this is what you get
Hopefully I didn't leave anything out..
