You can post images directly from the new post or reply windows, look out for the 'Add image to post' as shown here:
A dialogue box will appear, offering an optional list of sizes to upload to, with a button to choose your picture.
At present, the image shown inline on the posts is a preview thumbnail of 180x180px, but can be clicked on to view the full-size image.
Current fleet: '75 Sprint, '73 1850, Daihatsu Fourtrak, Honda CG125, Yamaha Fazer 600, Shetland 570 (yes it's a boat!)
Past fleet: Triumph 2000, Lancia Beta Coupe, BL Mini Clubman, Austin Metro, Vauxhall Cavalier MK1 & MK2, Renault 18 D, Rover 216 GSI, Honda Accord (most expensive car purchase, hated, made out of magnetic metal as only car I've ever been crashed into...4 times), BMW 318, Golf GTi MK3 16v x 3