The alternative is to upload the picture to something like www.flickr.com and then paste the URL (address) of the image into the upload link. This is more involved, but if you see a picture on the forum (like the one below) which you don't need to click on to see, that was how it was done. It also means the image is stored on another server to the one the forum uses - which probably pleases Admin. If you right click the image below and then select Properties you will see the picture's address is quite different to the one the forum uses.
Not entirely sure Mbc, possibly a less then generous browser or a personal problem.
The method as you worked out is to select the paper clip attachment icon and then for local files use the top half of the frame to browse to your picture/s before hitting the upload button relating to the top frame. Keep an eye on the progress bar (bottom right) to check when it's all done. Unfortunately if you don't keep your eye on it to see it fill up, when you next look it is empty and your brain cells will start to spin wondering where it all got to. Once it's done close the dialogue box.
The same goes for pictures from other sites (by URL) using the bottom frame.
I've never tried to mix both local and remote pictures in the same post, so can't (don't ) recommend it.
If remote pictures become unavailable, because the remote site has dissappeared, temporary DNS problems (or worse) or because the picture account has been closed etc., then the result will possibly be a red cross to indicate that the picture was unavailable.
It could be that Veg was actually commenting on one of your posts other than #7 when you aced it. He didn't actually say, so don't lose any sleep over it.
I'll have a go but probably worth printing this out first.
If you click on the Reply button a window will open which has a space to enter your text. Above this are a couple off tool bars. In the upper row is a paper clip. If you click on this another smaller window should open called Manage Attachments.
Towards the top is an area called Upload from your computoer. This is the one you want as the lower section is a way of linking to images which are already in the web, such as on Flickr.
On the right of the upper line is a button called Browse, there will be other buttons the same below it but you can ignore these.
Clicking on Browse will open up some sort of file manager software, in windows this will be explorer. You then need to navigate around this until you find the picture you want to upload.
When you find the picture double click on it and the Explorer window should close and you will be returned to the Manage Attachments window. You then click on the upper of the two Upload buttons. Not a lot will seem to happen but you can then click on Close this Window.
Further to the above when you click Upload the window will show the message "Uploading files, please wait" This is written about a third of the way up the window and is not obvious. When the file has uploaded you will see it listed in the window. If it does not upload then the file is probably too big.
You can then close the window and your picture will be there - as in like the one below of guzzling bees.