You are right on the "chilling with peeps", etc. You can buy a GF membership (totally optional) to help support BYC. Then you get that flag plus if you want you can choose what you want for the "chilling with peeps" line. For example, mine is "Leader of the Quack" which is not a "normal" level.
While you are entering this, there is a bar on the top and one of the icons is to embed a picture where you are typing. Maybe they have a limit on the pictures you put in your own gallery. When you put them in a post, they show up below your albums as embedded photos (each thread will show up as its own album). I have a couple albums, but most of the pics I upload, I upload in posts like I did above.