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^
That little icon on your toolbar is where you post the URL of the picture you want to insert.
There are a few different ways to get the link to your picture, if you don't already know how.
1) You can open a Photobucket account/use your existing one, or any other similar site. There they give you a few links Direct Link, HTML Code, and IMG Code, next to the picture. The Direct Link is the one you want.
Copy, return to the thread you want to post the pictures in, find the picture icon (

Press 'OK'.
2) You can use an image hosting site, such as www.imageshack.us or www.picturebang.com. Choose the pictures from your computer, resize them if you want, and upload them. Once finished, you should be able to get a direct link from the selection of links they provide you with.
Copy, return to the thread you want to post the pictures in, find the picture icon (

Press 'OK'.
3) Upload to Facebook or Myspace, or any other social networking site you use. Go to the picture you want.
Right click on the picture, choose 'Properties', look for the address (URL) of the picture and copy it, return to the thread you want to post the pictures in, find the picture icon (

Press 'OK'.
Any questions, feel free to contact a mod.