Ok, earlier I was trying to get osw to post my pictures with once I made a folder it would say I don't have permission to. Then I saw I was logged out. So I logged in yet I never logged out I tried again and the same thing no permission. So I logged back in this time it stayed logged in and I was able to get my pictures on my album to post.Jimster, things are a little different since the redesign, but it will still work with photobucket.
Now, there are two tabs when you go to insert a photo. Choose the tab that says "from URL." Insert the URL addy from Photobucket like you always have in the box and untick the message below that says "Retrieve remote file and reference locally."
That will get you there.