SteveStrummerUK
Ahhh... maybe we can't all do it
I'm on: Vista SP2 32bit & Windows Explorer 7 here.
For whatever it's worth, I've been experimenting trying all kinds of ways to do this ... no joy! I run XP SP3 on both my home and office machines. At the office: IE6; at home: IE8. In either case, all attempts (by various means ... copy/paste, attach file, etc.) result in failure to get an image inserted in the post. So, anyway, it does not appear to be an IE version issue.
Too bad! This would be a useful thing to have. I've got access to a web site with lot's of free space, but it's a PITA to put an image there and include the link in a post.