I'm trying to learn how to post a picture using the "enter an image" button.

Unfortunatley the right hand text of the instructions in this post are obscured by the Who's Online column.

After pressing the "enter an image" button what do I enter? I tried copying a picture from my documents and pasting it but that doesn't work. Am I supposed to enter a link address?

Is there no way to simply attach a picture from my computer to a post directly?