If you mean attaching images to a post? You can embed a link with the insert image option if I am correct.
i was thinking about this to, some weeks ago it was possible to upload the pic here on RD directly....
They had been turned off previously too, a good few months ago. An update I made to the software though included the new file manager. The installation of that seemed to have reset the settings. It would be great for us if people could throw the images up at tinypic.com or photbucket.com etc and use the insert image function to embed them via remote link.
