I replied to your post over at Buddha Forum about this, and a similar situation is at hand here.
Adding an image from Flickr isn't technically uploading. That is done when you "upload" a picture you have saved on your own computer. To display an image from Flickr, you have to put the image url/address in your post and the picture will show up.
All you have to do is click this button in your post
, and then put the image url/address in between the [ img][ /img] tabs.
It will basically look like this: [ img] image URL [/img]
