The 'Use rich formatting' will be at the last post on a page, next to the reply button. If you want to use it further up the page, when quoting a post for example, hit the reply button and it will appear. In there you can quote, use smiley's and add you pics using the insert image link.
On PB, get the links for your image using the Direct link option. Copy the link and then paste it into the box which opens when you select the insert image button.
I am a Norfolk man and i glory in being so
On the bench: Airfix 1/72nd Harrier GR.3/Fujimi 1/72nd Ju 87D-3