JB
When you click upload and the picture is uploaded successfully you simply need to click on the field that says Direct Link. It should highlight the code which will look similar to this:
http://www.curry-recipes.co.uk/imagehost/pics/25723c8ea4d2a14a784c967d4dacdbbf.jpg
With the code highlighted, press ctrl+c to copy the code.
Before you type your post in the editor window, press the toggle button

on the right hand side.
Type your post and when your ready to insert the image, click on the image insert icon

above the first smiley. A pop up box opens asking for the url, paste the code into this box using ctrl+v and click ok. The image will appear in your post.
Use the above code to test this, you should see the following image.
