Charlie has very kindly offered to write a how-to guide for this subject. Once he has done it, I'll make it a sticky (non-moving) post at the top of The Malvern Arms and Welcome Forums.
One point I would mention is that direct linking to an image in Photobucket that is not 100x100 tends to give a fuzzy image; therefore, if you are able to, resizing the image to 100 pixels and then linking as per Charlie's suggestion is the best course of action.
PS - I cross posted with Ian - his summary is excellent and as you'll see, he has also resized his image to 100x100.
