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@PatNY - I have a handful of smileys and similar small images in a personal album that I reuse from time to time. I have another album for one offs that I want to put in a PM, I cull that one every now and again. The reuse images are a mixture of png, jpg, and gif.
Can't recall any problems with either album.
If you add images via Manage Attachments, you can insert them into a post (ie inline) by positioning insertion where you want the image and clicking the paper clip icon and selecting required image.
BR
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