Ok we will see how this goes. I have enabled the album features of vBulletin as well.
Along the top tool bar there is an option "Quick Links" and then from there an option "Pictures & Albums".
You can create a new album and upload pictures into it.
This album does not automatically resize pictures and has limits to size and number of pictures you can upload. If you want all the fun automatic features use one of Joe's suggestions above.
Once you upload a picture into the album you can click on it to see it full size. Below the picture there is a field called "BB CODE" if you copy the entire string there and paste it into a post you get something similar to the following:
Let me know if you have any questions or problems with this.
Serge.