1. by uploading images into Yuku's image hosting system. It's storage is generous but limited. I would recommend this only for things you don't want for long term storage. Image size is limited and (so far as I have been able to determine) there is no method for creating thumbnail pics.
2. Use an image hosting site such as "Photobucket." I do not name it as a particular recommendation, use whatever you want. I just name it because it is possibly the most common such, it is what I use so it is what I am familiar with and can reference but most importantly, Yuku links directly to it. There is a link over your text box to automatically access an active Photobucket album.
As a rule, such sites are free and allow generous storage of many images and limited editing capabilities. The quality and quantity of such features may vary by site. They will also offer advanced services for a fee but as noted, basic services are free.
The option of most interest here, offered by Photobucket I know, is the automatic coding for inserting images into various venues such as our site.
Codes are offered for inserting full sized images or thumbnails. This last can be advantageous by way of leaving your images larger for good viewing of details while making viewing of the forum page quick and easy. The reader is given the option to enlarge only the images he/she wants to see in detail.
Below, I am posting images I have made showing the steps to getting your images into here...
If any have suggestions for improving this aid, please feel free to add your input here or pm me with your suggestions for inclusion.