Ahh, the manage current attachments bit is just for the thread you're in (I think, only ever attached one thing). Go here and you should be able to remove old attachments to make space. Lemme know if that works.
Oh, and
[img=http://img253.imageshack.us/img253/694/controlpagegs4.png]
[img=http://img525.imageshack.us/img525/2549/replypagebk4.png]
will embed the pictures.