We have to be careful with this due to the fact that we don’t store 10mb images. During the upload the file is crushed down to a maximum size of 1024×1024 pixels with a jpg quality of 70%. The bigger the limit on file size we set the more overall work the server has to do to handle the compression.
For those that are having issues it could be file size. I’ll up the file size limit shortly.
When I was having problems yesterday the files were definitely not too large, but there did seem to be a delay between hitting Submit and the photo appearing – sometimes it just didn’t. This could be related to the compression process? I’ll try again later today and let you know if I gain any more insight.
In many cases you can just paste the direct image url in the editor and it will render out as a hotlinked embedded image. You can also paste the image url into the source box in the image upload popup.