There is a problem but when it doesnt load the first time try again and you will see the filke in the list to the left of the screen and select it and it will upload. Its twice the work though so Photobucket is the easier way to go!
Open the photobucket page where your pic is and then hold your cursor over the pic you want and a dropdown box will open. Click on the very bottom one called IMG code and that automatically copies it for you. Then go to your post here and under your writing paste it in by right clicking and selecting paste. It will insert the pic for you then. Just dont delete that pic from photobucket or it will erase the pic on this site!