I didn't know we could do it until Al started posting pics the other day!
You just have to get an account at a photo hosting site such as PhotoBucket (which is free).
http://photobucket.com/Then, you have to upload a graphic (which isn't hard).
Then, you have to do a full "Reply" (not a "Quick Reply"). When you do, there's a little button marked "Enter an Image", and you enter in the web location of your image.
For example, the location of the one above is "http://s257.photobucket.com/albums/hh220/bcmd_photo/typewriter_table.jpg", which you can see by right-clicking on it and selecting "Properties".
When you preview or post, the picture appears!