To upload photos directly in your post you need to pay Dan a tener and you will get extra options when posting a message.
You also have other options.
1 - Use the the free gallery. To use this you have to make sure yur photos are shrunk to a reasonable size first. Then click on Profrile - then View Gallery.
First create a category by clicking on Add Category - all you need do is to give it a title. Then click on the Gallery link you have just created. Click Add Picture - Give it a title - click browse - locate the pic on your PC - Click Open - your pic name should appear next to the browse button. Then just click add picture. The image is then uploaded and you can view it in your gallery and use the BB code to insert in your post.
2 - Use an external host. You can post images from anywhere - all you need to know is the address of the image. Most people use Photobucket but you can use Facebook, Google +, Flickr, Picasa or any other image host. Photobucket has the best tools but does limit you on bancwidth - here is a vid showing how to do it from photobucket
http://www.youtube.com/watch?v=z4oMgOTrpjEBasically you can use any image from anywhere - just post the url here - highlight it and click on the Image button - it adds the BB codes fro you.