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According to our webmaster the Upload feature you're referring to doesn't work. You'll have to use the edit/insert button and then enter the URL of your image. Sorry for the confusion. We can't wait to get the new forums as much as you all. :)
The way I handle a lot of images/screenshots is by simply right clicking them anywhere on the net (if they are uploaded somewhere online) and clicking copy, then pasting them into the text box for these forums, hitting enter after each one if I have multiple images to post, I have been doing this without issue for around 3 years, if the image isn't uploaded somewhere, just use Imgur or FB or somewhere else to post it, then copy/paste :)
But yeah, as Blue said, the new forums can't come soon enough for us either! :)