If anyone is interested, and happens to have Rmagick installed, I added on to the image insertion drag and drop command in the blogging bundle to automatically thumbnail and link with titles, alt tags, etc. It gives you a drop down menu asking you whether you want the thumbnail, the full image, or the thumbnail linked to the full image (a rel=lightbox tag is included for those using it).

Like I said, it requires Rmagick (and ImageMagick or GraphicsMagick) to be compiled and installed. It bootlegs on the original command for everything else.

Brett