i use photobucket which is free to put my pictures on the web. thier is other free ones but photbucket is about the easiest i have found. here is a link the site is totally free
http://photobucket.com/ once you have your photos uploaded then just copy and paste the image img code here using the insert image icon which is the one that looks like a post card in the reply and new post area on the same line as where you make bold print and things like that.
you can also put a custom avitar on your name in your user cp pannel. avitar is the little picture next to your name like i have on my posts. you will have to reduce the picture to less 100x100 or less which you can do in photo shop and other picture programs. if unable to do it and want one pm me with the avitar you would like and i would be glad to do it for you.