Bill, you need to upload your photos to somewhere like photobucket or imageshack etc. Facebook will only work for ppl with accounts and linking from a folder on your machine definitely wont work.
For it to work you need to post a url (http://www.this is the location of my jpeg in the address bar at the top of my browser.com) in between 2 image tags [ image]www.jpeg[/image] (no spaces in the tags)
