Originally Posted by randya
I tried pasting/inserting the image just like you did, but that didn't work in this case. Instead, I copied the photo to my own computer ('save picture as'); in advanced mode there is a 'manage attachments' section below the text box, that feature allows you to browse and upload the picture from your own computer and viola, you get the 'thumbnail' image.
Don't need to do that if the image was already online.