[COLOR=DarkRed] You can upload them directly from you computer by attaching them. When you are posting scroll down a bit to "manage attachments" and then use the browse button to find the image you want to upload.
You'll need to resize them first to about 500 pixels wide on the longest side and no more than 146kb. If you don't have software on your computer you can do it online, too.
Shrink Pictures Online
Resize to Mail
Picasa (free) You download this one and use it for resizing and other stuff to your photos.
To use the toolbar link you would have to have them in an online gallery or website.