I was trying to figure out the best way to do this last night. There are two methods for posting photos now.
If your photo is located on a publically viewable web site, and ends in an extension like .jpg (and your web site allows "direct linking" of the images), then you can use the 4th icon from the right to specify the link. When you move your mouse cursor over it (when in "Post" mode typing a post), you'll see text that says it's to "Insert Image".
If your photo is on your local PC, then you must use the Browse button, to find the photo on your hard disk drive. You'll see it underneath the form you type in when posting. When you pick an image from your local PC, it will become an attachment to your post, and users will be able to see it when they open the post.
You'll want to downsize your photos so that they are not too large to post. If you don't have tools to do this, there are some free packages available (like irfanview, downloadable from http://www.irfanview.com
). Let us know if you need some help in this area.