marius wrote:What I did: Copied URL from Flicker, came here, hit Img button. Then the cursor showed up between the [img]and[/img] and I pasted.
That is correct, however I do not see where you tried to do this? So I can offer a suggestion as to what may be wrong.
Links do need the "http://" and my or may not need a "www" depending on how the website they are hosted on is set up. (Mine should work either way, though some sites still must have the "www")

URL above placed between the image tags
http://mysecondbathouse.com/houses/grooved_pvc.jpgSame URL placed between the URL tags
http://mysecondbathouse.com/houses/grooved_pvc.jpgSame URL pasted as text. No [something] [something] tags, and yet on preview it too turns blue and becomes a clickable link on my system.
William