In the reply to box there is an icon of a paperclip (next to the capital A). That takes you to the right place to upload. You may need to save the picture somewhere first though. Hope this helps.. Can't wait to see what you have to show.
Aahh, this happened to me last night when I tried to upload. DH says you can reduce the size of pics. He is going to show me how later and if it works I'll PM you.
To resize the pics you need to open them in something like paint and then do a resize. Using pics from my mobile I always need to scale them to 10% vertically and horizontally. Then they are small enough to upload.
Hope this helps.