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It's because if you upload a File onto a site, then that site now is hosting more data and it costs them more money. So alot of places don't allow 'raw' uploading form a hard drive. Something like that anyways
You have to upload your image to an Image Hosting Service, such as Photobucket.
http://photobucket.com/ <-- Go here and sign up for an account, it’s completly free! This allows you to upload images from your computer and share them on websites such as MLK. You need to upload the image to your Photobucket album, and copy the image URL into the code LadyAnette gave you. (right-click on the image, choose properties and copy the image link after uploading it to photobucket)