photobucket is good for inline photos, you can label them underneath. attachment uploaded photos get plopped at the end in an unlabelled mass.
photobucket is set up so you are using their bandwidth, they expect you to link.
OK as long as you do not delete or move your photos there, or until photobucket goes out of business.it's a pain in the ... if your photo goes walkies.
vbulletin 4 has much improved inline attachment and other photo upload capabilities, hopefully we'll be able to upgrade at some point. we just upgraded to 4.1.3 on the firewall forum i help moderate and love it.
& if you have space, keeping your attachments on the forum server is the way to go.