In order to post images here you can use an account like photolocker.com and paste the code into the post. You can also direct upload from the post if you wish to. Most people prefer to use the free imaging service. I too can't see the pics without signing up.
YES i have picassa 2 it keeps asking me if i want to "update" so far i like it as it is. It does have exporting and send to blog options. I am going to have to check it closer. I don't have a google login though