Just so I am clear here, you are pressing the IMG button and inserting the link in the pop-up box, right? If you are doing that the the link should not appear, if it is done INCORRECTLY a little box with a red X is all you would get, that means the link is bad.
If you have some kind of instant messaging I can walk you through it.
Sorry Gregg, if you are doing it correctly and only getting the link to show up it is because you are trying to post a pic somewhere other than General discussion where the image option is turned off, sorry, this is probably what you are referring to and I missed the point.