1) Sign up at any photo hosting website (ie: Image hosting, free photo sharing & video sharing at Photobucket)
2) Once you have an account, follow the link to upload pictures.
3) Once a picture is uploaded, you will see a link is provided beside the IMG field below the picture (that's why I like photobucket cause they have the link below the picture, hence, not all photo host provide that.)
4) Copy the link and paste it on the message like

[IMG]http://i157.photobucket.com/albums/t66/the_mad_hat_man/P8270182.jpg[IMG]

the second [IMG] should have a / before the IMG. It's taken out purposely for demonsration. With the / you will get this:

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