Allan, thanks for the response (I've only just seen it, having been away).
On 7 Mar 2010, at 16:31, Mike Lim wrote:

> […] Should I be able to upload an image straightaway into the post
> before posting it?

You should, yes.

> If so, how can I fix the problem I'm having?

If you get a regular link it sounds like you haven’t selected the
proper (Blogging) grammar.

What does the status bar show? and/or the tool tip which appears on
⌃⇧P (press that when in a blog post). Also, what extension does
your image have? And do you have multiple blogs or just one?
When I start a new post I do so by selecting New From Template > Blogging > Blog Post (Markdown).

The status bar at the bottom says "Multimarkdown" (even if I select HTML from the Blogging new template).
The tool tip comes up as 'Convert to PDF' (either on its own or with 'letter' or 'XeLatex').
My images have .jpg extensions, and I have two blogs, both on

Thanks for any advice.

Mike Lim