XF 1.3 Uploading of image.

Hi Team

Is there any way of uploading images without having to use a link.

Ie: most of my members would not be able to upload images as they do not have any hosting for them.

I understand we would then over time run into space if the are thousands of images... is there a work around?

ALSO i do not seem to have a resource section available in my new software? where would i enable or find this please?
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BOOM! AndyB not sure why i was fixated on the image upload in the tool bar.

So i presume that all these images simply get hosted on our own domain?
Thanks for your swift help.