I've never had any difficulty using the on site albums. The only limit imposed is the size of your image once uploaded. High resolution images get resized automatically. Images posted from a third party source don't get resized. Once you have uploaded images to your album, posting them is also simple.
Once you have uploaded the images to your album, do the following:
1. Go to your album and click on the thumbnail of the image that you want to share, so that you open the image's page.
2. If you are using a Mac, hold down the "control" key and click on the image to open a pop up menu and select "copy image location". If you are on a PC, I believe that you right click to access the same pop up menu. In either case you want to select "copy image location".
3. Go to the forum and click in your reply window.
4. Select "IMG" from the menu above and paste the image location that you copied, into the IMG window. Click OK. You will see the image location flanked by IMG in your post.
5. Click "send post". Your image will appear in your post.