The first step in posting photos is to upload them to a server such as perhaps your internet supplier provides, or MLS if you're a 1st class member. The address for the one you're linking to is on your local drive. Once it's on a server, displaying them is fairly easy--though some folks are reporting a few bugs with the new software. (Works for me, but...) You copy and paste the URL for the photo between "Image tags" which look like this without the asterisks. [*img]url_goes_here[/*img]. Once we know the kinks are worked out, we'll once again post instructions in the Beginners' forum on how to do things like post photos, insert clickable links, and all that fun stuff.
You will need to be a first class member to upload photos here. You can however upload them to free servers and then just copy the url to your posts. Right now you are trying to reference an image on your computers harddrive, which won't work since your computer is not an http host.