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... is security (e.g. embedded viruses) a factor?
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A factor in why members can't upload pictures directly to TFL? I already stated that members can do so and provided instructions. Since members CAN upload pictures directly to TFL, it's not possible to provide any meaningful answer to a question that assumes it's not allowed.
Ok, let's start again with your first question.
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I'm just wondering... why do almost all forums use the [IMG]<image URL>[/IMG] process for posting images into a message, which requires first uploading it to an online database like Photobucket, instead of just using a browse button and uploading it straight from your computer?
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Use of the [IMG] tags does not have anything to do with whether or not the use of a third party image hosting site is required or not. TFL uses the IMG tags but still allows direct upload of images (subject to certain size and format constraints).
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The latter is so much quicker and simpler, but you almost never see it.
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You see it here at TFL.
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but pictures need to be taken IN THE HIGHEST RESOLUTION possible for best results
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For properly sized images, that don't need to provide zoom/enlargement capability, 150dpi is more than sufficient. Higher resolution than that is necessary if you wish to provide hardcopy prints or zoom/enlargment, but for simple display, anything more than that is overkill.