Yes... just like facebook, you can upload photos right to the site - for free. You no longer have to resize them, it now does it automatically for you. Here is how to use it:
To reply to a post, you have 2 options...
Option 1 is a quick reply is for text with no images, just type in the composition field directly under the last post and then push "post"
Option 2 - for more formatting options and to add photos, choose the "more reply options"
If you do want to add photos, or do some additional formatting of your post, choose the "more reply options" and then you can either drag and drop or choose a file from your computer by clicking or draging in the field where it says "click or drag files here to upload"