I noticed a new post in this thread but rather than continue in that thread I decided to start a new one here.
First, I really do need this image embedding functionality and I am not a coder with the ability to be able to code this sort of stuff.
I have followed many discussions and made numerous comments (many other users have done likewise on similar threads). So without any workable results I revisited the image module and installed it again on my test site.
To my surprise....I found that it seems to now work as I would like it it work for about 70% of the functionality which I require.
It is indeed possible to simply choose an image from your local file system and reasonably seemlessly have it produce a node with the image displayed at the site admins choice of sizing with a link to the original image included on the page. The node teaser also includes a clickable thumbnail to the preview page. Great!
My earlier experiences with this module were less than workable and I dismissed it as next to useless and went on to test all the other options with similar results in all cases.
Is it at all possible that the image.module could be slightly extended to enable extra images to be added to the same node in the same seemless was as the initial image is added?