I have no problem doing that. Not only can I do it with the little picture icon above the edit window (in either the posting window or edit my page window), but I can just drag an image and drop it in here.
Thats what I just did with the picture below. I dragged it from a separate FF window, it's posted on another site I frequent, and I dropped it in here. Then I grabbed one corner of the picture and sized it down smaller. Reallly easy!
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The picture might show for you, but it does not come through for me. All I see is a red "X" and the filename of the picture "Brooster.jpg" Still, it's exciting to see that even that information cam through. There's potential there........