I was able to get it working by adding an html img tag to the "Description" field.
e.g. <img src="http://loungeoftomorrow.com/LoT/images/misc/vbulletin3_logo_white.gif">
That created a post with the image in-line. You can add any html data to that field. For example if you want the image to link to something:
<a href="http://www.whatever.com"><img src="http://loungeoftomorrow.com/LoT/images/misc/vbulletin3_logo_white.gif"></a>