I decided to put this together because i've got several friends who are
still having trouble inserting thumbnail links into their posts and it turns
out, explaining how to do it is much harder than just doing it.
Edit by Skip: I've updated the info here. Thanks!
OK, I've just installed an upgraded photo popup that can list both your Forum Albums and Old Gallery images. You have a lot of options you can select too. Plus you don't need to be able to drag, you can just click and the link will appear in your reply box.
I hope this solves the problem for most of you.
Just click on the link under the smilies and select which Photo system you wish to retrieve your images from. Then click on the image, (don't drag the image!) and it will appear in your reply box. Or if you are not in the Enhanced Message Editor, it will appear as the correct code and will show the image in the post fine.
I'm leaving the other buttons to your galleries so you can upload images into either from the Reply page. (the popup doesn't have that feature yet).
One more difference between the new popup and the gallery links. The new popup ONLY works in the reply box where you initiated it. Whereas the gallery links will allow you to drag images into text boxes anywhere on the site. So you can keep those windows open for your session.