Could someone explain to me how to do it because I havn't a clue.
Above the place where you type there is all that stuff with the tabs, http://, img, @, that stuff. If you want to do an image that appears on your post, hit the IMG button, (you may need to click on your toolbar to allow scripts), then paste in the box what you want to image. If you want a link to your image hit the http:// button, then pasted the link, then it will ask you to type the name.
Or you can type it, [*IMG]paste link in here[*/IMG]
This will make it appear in your post.
[*URL=paste link in here]Name it here[*/URL]
This will link the image.
Just remove the * and they will work.
You will need to host your picture somewhere online however.
Try Isarapix, Photobucket, Imageshack etc