Yeah I am not sure about these non functioning features in skoolie.net. I think the work around thru imgur or photobucket is created to expose you to more adds and create more clicks, so more revenue for someone.
The limited space issue cannot be it because there is no problem uploading pictures to skoolie album. Skoolie does not allow its own album pictures to be linked ?????
My work around. Upload to skoolie album... select image and click copy.... hit past in your message...
The image is small, the same pixel size as the thumbnail in skoolie album.
If you want you can go back in album and copy the link location.... then select the insert link and past the link.
When you select the link in the message it shows you the image in skoolie album.
The link appears in blue in your message , ( if you do it right)