Not sure what's going on but pic option seems to be working and other times not working right now.
Anyway, the pic you linked. Click on it. When the page pulls up, copy everything in the location bar. In your message paste the entire address in the box entitled "picture url". If you copy and paste the entire address, then just be sure to delete the already-entered "http://" When you post, your pic will be displayed at the bottom of the message.
However for the pic to display, the address has to end in .gif, .jpg, or .bmp. The address you gave us does not so might be one reason it's not showing up.
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