Bob, When I post a "direct" photobucket link into the input area and press return, the image shows up. Then I can add more text or whatever before posting. Maybe it's a browser thing - I use Firefox.
And I do remember when WYS was not WYG - yeah, I guess I'm not exactly young anymore.
As for spacing . . . just type, type, type until you want a new paragraph and then hit 'enter' to add a line between them.
Are you still running CP/M-80 or something? lol.