I mentioned that you can test the link in Reply#4 (Step 5) but I guess I should have given that a bit more attention.
You get what appears in reply #9 if you put that link in the Post text window, so the same window where you type your message. That will work fine too. But you have to make sure you get at least a space behind the link or press the Enter button once, otherwise the link will not work.
I think you should be able to post links with or without the advanced editing bar on, but I've never tested it with the bar on, I don't use it. Perhaps someone else has more experience with the advanced editing bar?
Built in mouse pads can be a horror to use when you use the pad for clicking links instead of the buttons. At least I always have that problem, because I type with ten fingers and have to lean on the mousepad for that.
I don't know exactly how the automatic resizing function works. Perhaps Robert can answer that question. I suspect that it is designed to make the picture as big as possible within the max file size.