The other way is to do what a few others do, that is to upload images as normal and then open the image from the Manage Attachments popup and then copy the URL from there and then insert the image before you submit the post or thread, the only drawback with this is is still leaves the thumbnails at the bottom of the post such as shown here in one of BobL's
post of which I personally don't like, I'd rather the thumbnails were embedded into the text and I had the choice on whether to open them or not, rather than Bob forcing the choice onto me as he has already done it.