Tom,
It may be my lack of savy on pictures, but I have followed Ric and Bruce's methods with success at first then after installing a firewall had a lot of problems. I'm sure its my own lack of pc knowledge but I found that using some software to resize the pictures before uploading helped...don't see what if anything that would have to do with the firewall, but have been able to post/upload since including that step to resize first. Maybe it would help you or maybe it has nothing to do with your problem. Just helped me to resize first. Thanks.