For Picture Posting in your Account Profile you may directly upload a picture from your computer. This can be done also for your Avatar.
If a picture does not load from your computer for use as an Avatar, the following suggestion by Hunterman was Great!!! Take a pic and size it to 80 x 80 and save to your photobucket and copy the URL code and then paste that code into the Avatar upload and update your Account Profile.
You can gain access to your Account Profile by clicking on your User Name/Display Name in the upper right corner of the screen next to the Log In/Out Option. First click edit profile and then click update profile when you are satisfied with your changes.
For posting pictures in the forums such as including pictures to share along with your stories in the Bragging Section, you can use Photobucket to copy the URL code and then paste it here. Again as long as your picture remains in your Photobucket it is viewable here in the forums. The same size restrictions apply and we ask that the pics be no larger than 640 x 480. * I have also noticed I have had to, using the Insert/Edit Image Option, in the toolbar, which in the "reply option here" is middle of toolbar for me, use the direct link from photobucket.
When you post a new topic, on the toolbar there is an Insert/Edit Image Option (third row down on the left side) which brings up a place to put the "URL link" or try the "direct link" from photobucket and that should work.