having trouble embedding pictures

Can anyone help with how to go about embedding pictures in a post?
 
I have tried uploading the files (which are less than 30k) but the popup tells me the files are too big.
 
I have checked the box that says embed pictures, but I can't paste a picture from my clipboard.
 
Anybody know what I might be doing wrong?
 
Thanks.

same happened to me .. anyone have a solution, pls?

I''m having the same problem trying to load an avatar - my file is less than 25k, and my size less than 145x145, and it still tells me it''s too big!