Hi Gene,
I use a Mac, but it should be similar on a windoze machine.
I go to any photo which ends in" JPEG", (or in your album) hold "control" (Ctrl in windows) and scroll down to "Copy image address" in the photo, and click on that. Then I go to the post, hit , paste in the "image address", and then hit[Img*].
In your case the address enclosed was:
"http://www.c-brats.com/albums/Blaine-Wa-to-Alaska-2008/day3wrockcustoms.jpg"
I suspect your photo did not have the correct compressed image format, such as JPEG. (I believe that there are several other common photo compression "names" (such as PNG and GIF) which may work.
If I have a photo on my computer, I first put it in my album, then copy to the post I
am making. It will also work with photos in external albums, which have an address.