Under quick reply, if it is invisible, go to your settings and make it visible, settings, general settings, enhanced uploading enabled (ALL THE WAY AT THE BOTTOM)
Click on the image insert image
and follow the instructions use the url button if you are uploading from tinypic
insert the http:// locations of there file resides
Click of the button Retrieve remote file and reference locally
When you want to post a picture copy and paste the IMG code from photo bucket into your message and the photo will display.
If you paste the Direct link code you have to paste it into the pop up from the Insert Image button in the DR1 Advanced Message window, choose from URL tab, uncheck Retrieve remote file and reference locally