I store my pictures in "Photobucket" and have no problems.
I open a post (or reply) then open photo bucket (hit the + sign at the top of this page)
Find the picture you want from the library.
Tap on "IMG" at the right of the page ( last one at the bottom) and when it says "copy" I hold down on "ctrl" and hit "c".
Then go back to the post and hold down on "ctrl" and hit "v"
And WALA! There it is!
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At first it looks like two rows of computer geek but, when you hit "preview" or "post" it comes to life!
I guess "c" means copy and "v" means view but, I'm not sure.
By the way, this picture is the first thing I ever cut a LOOOOONNNNNGGGG time ago.