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Look to the right under the Smilies box. It says My Photos and then a button to Insert Images. From there click once on a photo from your Albums and it will automatically insert the code.
Take note of where it says From Photos and Albums because the default is thumbnail linked to original. Bring your cursor into that box to get a drop down menu with more choices. I usually select original only to get the picture to show in the post.
Take the time to preview and edit your post to get the look you want before you click Submit Reply.