It only allows you to do this if you're posting a picture, but if you want to post a text post with a picture thrown in you need to upload via url, which usually doesn't work.
asked Jun 30 '11 at 03:46
It does... above the text box is a link that says "upload photo." Make sure you aren't clicking the button that has a picture on it in the toolbar.
answered Jun 30 '11 at 04:07