If you look at the bottom on of the page it will tell you that You can also upload an attachment, this way when you get carted off to prison, the links you leave wont leave the red X when your site is torn down by the feds.">
While you're writing your post, look for the link that says, "manage attachments" With that you can upload the photos to the site. Also, you can create photo albums for yourself http://forums.fugly.com/album.php
Some sites don't allow hotlinking of images, though. A good way to check if your image is going to be seen by others is to submit your post in the browser you typically use (say, Firefox), and then open up the thread in Internet Explorer, and see if the image is still there.
That doesn't work... If you've viewed the image before you link it, a temporary copy of the image in the url is stored in your 'temp' folder. When you 'preview' the thread before posting, while using the same browser, the browser itself will take the image from it's temp folder before actually going to the site and reading the image. It's a false-positive. Ya dig?