Had the same problems with Photobucket, so I went to Tinypic as a tip from a pal on another forum. Works slick and no need to download to the site or register. You take the pic right off your computer. Thought I'd pass it on.
Go to
tinypic
Under Upload Images & Video click on Browse.
Find the image on your computer.
Double click on the image.
Under Resize, choose 'Message Board'.
Click on UPLOAD NOW.
Type in the code.
When a new window opens, click on the bar below IMG Code for Forums & Message Boards
Now just click in your post where you want the photo.
Done.