Not being able to easily upload and embed pictures was pretty annoying so now it is fixed.

To embed images in your posts simply click the little icon at the bottom of the post edit field (when the rich editor is enabled) then click the icon in the dialog that appears.

A dialog will appear that will allow you to either choose an existing image or upload another one to the central images folder.

After the upload completes you can click on the new image to insert it into your post at the current cursor.

Cool!

UPDATE: You might have to set the input format to ‘Full HTML’ for this to work. I’ll try to fix that tomorrow.