Steve follow the instructions below to insert an image into the text of a post.
NOTE:--You have to upload the image first Then follow the instructions below.

To embed an image:
Right click on the attached image in question and "Copy image URL"
Go to the post with the URL in the clipboard, place the cursor to where you wish the image placed
Click on the "Insert Image" radio button directly above each post, when you open it "paste" the image URL into the popup
the result should look something like [ IMG]http://www.imagesource.com/image.jpg[/ IMG] (without the spaces in the IMG tag boxes)
Finally go to "Attachments and other options" below and uncheck the photos you have linked to, they will no longer appear below the post as before but the new "Inserted" photo will remain.
when you save your post, you should be able to see the image