I was having the same trouble, Barry. When I tried to attach a .jpg to the post itself, I kept getting an error message.
"The upload folder is full. Please try a smaller file and/or contact an administrator. "
The file size was completely within the posted range.
When this happens, I usually circumvent and go straight to either the Knight's Gallery, or my own personal webspace. I don't know if Mr. George has a gallery yet or not, though.