i've had issues also and the message i keep getting is i'm unauthorised or something to that effect. Never used to have problems. (and yes they are under 32kb)
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I had the same problem but this is how I get round it if the pic is from the web:
1. Click the green Post Reply button.
2. Click the Insert Image button.
3. Enter the url in the Image URL box.
1. Click the green Post Reply button.
2. Click the Insert Image button.
3. Enter the url in the Image URL box.
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