This is mainly directed at people who use ImageShack or equivalent:
The problem with ImageShack (and some others) is that when you upload to them they give you a link to a PAGE with the image, not the image itself. They do this to sell advertising revenue, when people view their images (as you would have noticed, the pages are usually plagued with ads).
E.g. (This is what ImageShack typically links people):
(This is a direct link to an image):
The easiest way to resolve this is switch to an image hosting service that gives you a direct link, such as Photobucket or tinypic.com, but you can still get the direct link from ImageShack (and others), however it varies from browser to browser.
In Internet Explorer: Right click the image, select properties, and then copy and paste the link in the field marked: Address (URL).
In Google Chrome: Right click on the image, select open image in new tab, then copy and paste the text in the address bar of that tab.
Other browsers vary, but it's something along those lines^
Once you have the direct link, you can put it in between
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