I do mine from photobucket and just copy the direct link code from thepicture there and paste it in the image icon under the "From URL" but you have to uncheck the "Retrieve remote file and reference locally" box below or they don't work is what I have found.
Click the button that's a TREE in a frame.
Then you're prompted by a popup window that says FROM COMPUTER or FROM URL
I like to select from URL and then you paste the direct link ex: http://www.picture.com/picture.jpg and then make sure you UNCHECK "Retrieve remote file and reference locally"
Then press OK and the picture should show up in your editor.
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