Hey chip, it's quite straight forward once you've done it one or two times. If you edit your post and hit the 'Go Advanced' button it will then have a 'Manage Attachments' button if you scroll down a little bit.
When you click that button it brings up the pop up section which is the same as when you load your pics initially. On this pop up screen the pics you have uploaded will have a link to them at the bottom of the pop up (just under where it says Current Attachments). Click on the link and it should open up a separate tab with your image.
Copy the URL then return to the post which you are editing and look for the Insert Image icon which is the one that looks like a miniature postcard with mountains on it (next to the quote icon). Paste the URL in and hit ok, then voila... it should display your image in the body of your post in all it's glory. If not then you have done it wrong
That way you don't have to link from photobucket etc.