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When you upload you can do one of two things.

1. Take the url and insert it into this:

[img*]*insert URL here*[*/img]

But remove the stars.

-or-

2. Click on the picture image in the toolbar at the top of the post reply box. It's on the second row, fifth from the right. After that, insert the URL into the specified box and click "insert".

The former is my preferred method, but the latter is the only method that allows you to adjust the size of the picture, as far as I am aware.