I have been remiss in my duties as moderator in not keeping up with changes that were made some time back (maybe a year ago?).
The new process for members to upload photos to thier own photo album could not be easier!
Every member automatically has thier own album, and can create sub-albums (not sure of the limits, but it's generous). Just click on the "Member Albums" under the "Features" section of the left-side screen menu, and it's all self-explanatory.
You still have to use a the "insert image" button in a post, but just paste the link there and the photo will show up!
Example-
Linear Mode
