your pic first has to be on the internet... then u right mouse click on the pic u want and go down the list to "properties", copy the URL address then before u copy it to the message place "[img]"%20at%20the%20start,%20then%20copy%20it%20to%20the%20message%20and%20place%20"[/img]" at the end.. hope u can understand it, i tried to make it simple.
You can sign up for a free account at www.photobucket.com and download your pictures there and then copy and paste the pictures with the IMG format right into the text of your message. This is what I do.
It doesn't look like you copied the file correctly. Once you are on photobucket after you copy and paste your IMG name, then if you preview your message before you post it, you should be able to see your photo not the IMG name