It still doesn't work for me to post images
All I get is a blue box with a question mark in it!
Mae, when you tried to post that pic of a cake for me, the pic didn't come up but I opened the web address in a new window and it was a Google image search page. You didn't have the right web address in your image link -- it was a link to the web page that the photo was on, not to the photo itself.
If you go to this site: http://allineedisapicketfence.wordpress.com/
you can scroll down and the first pic is of Federer and Djokovic holding their trophies after the Cincy final. If you click on the photo, it will take you to a page with just the photo on it. If you copy that URL and put it within the IMG tags, you should be able to post a picture.
But not everyone makes it so easy to grab the image's address (by making it clickable and to open in a new window). So you have to right-click on the image and then either select the option "copy image address" or if you don't have that option on your browser, maybe "Open Image in a New Window" and then it should open just the image (and not all the other stuff on the website) in a browser window. And then you can copy the URL from the new window's address bar.
Give it a try