Pics are ok as long as they're not heavily animated and huge. It's the sigs that have the size limit, because they are attached to every post you make.
One-off pics are ok.
That "file attachment" option available at MH is a special mod to the YaBB that Ken Baker made to facilitate people who couldn't store stuff on the internet. He did it because he wanted people to upload/download weapon packs etc from the TeamBG site. It's not a standard option and it costs a LOT of space so I doubt if we will have that for UBB v.6, unfortunately.
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