I had that issue for a while. Now, I just right click on the pic and select 'copy image address'. Then I paste into my post and add the 'IMG' tags.
Rich... Have you by chance changed browsers? When I switched for IE to Chrome it really messed with what I have to do to post my pic's on Photobucket.
Rich the same thing happened to me on my last post. Like JimK says I just right clicked and copied and then pasted to the post. I have heard that if you pony up the monthly fee that photo bucket works fine. Not sure I like being coerced into this. But it is definitely frustrating.
I was trying to compose a review of a barbecue place yesterday and cutting and pasting pictures. I've got excellent internet but my computer is kind of old (It was nice for 2008). Photobucket slows it to a crawl with the ads. I've successfully used flickr. I may just have to go to that. It's stupid typing a whole sentence and having to wait 30 seconds for text to show up.