Here is an example of what is happening when you try to upload a picture this way:
The http address is LOCALHOST which is not the way it's supposed to be the http address should be a blogspot.com address.
They are working on a solution.
Just letting anyone else know what is wrong.
You'll have to manually go into BLOGGER and upload to get pictures to show.
*wow that was fast*
Now that is really strange.
That picture would not appear before, now it does...
Perhaps they've fixed it....*sigh*
**OK**THIS IS TOO WEIRD!
I put the html code on the edit html page instead of on the compose page and it makes the pictures appear.
THAT IS TOO STRANGE!