And failing - I can't for the life of me figure out how to upload a picture even when using these steps and it's annoying me greatly. Here's what I do:
1) go down to manage attachments and click on it.
2) select a file (previously resized to less than 800x600)
3) hit submit reply.
There doesn't seem to be an 'ok' or 'approve' button for the picture, and it doesn't show up in the reply box (but I'm not sure if it's supposed to)
I'm going to try once more.