I'm guessing you mean the (bracket) img (bracket) code, which that does work for inline, but what I really meant was a way to attach an image to the post, and then refer to that attachment IN the post, to show the image inline.
For instance I've seen some forum software that allows you to upload an attachment to a post, then before you actually submit the post, you can edit the content and insert something like
(img)#1(/img)
which then acts exactly like the image code works, but pulls the image from the #1 attachment to the post itself.
Maybe SMF just doesn't have anything like that.
Here's a test

Ah, ok. to do that, I had to attach the image, SAVE the post, then MODIFY the post, grab the URL of the attachment, and insert it into the post body in IMG tags.
That'd work, and it is a little less trouble than attaching images over on that other "Post images here" thread.
hmmm....