I'm not sure what you mean by "picture-friendly". How is this board not "picture-friendly"?
I've adjusted the scrolling settings so attached images will only get vertical scrollbars when the height exceeds 600px. That should be enough for most images. The width is set to 100% of the available area, and so whether you get scrollbars will depend on how large your screen is. Surely it's better for just the image to get horizontal scrolling if they're larger than your browser window than for the entire post to be made wider so that you have to scroll in order to read the text.
Inline displayed images, either uploaded using the Java uploader or hosted externally should only result in scrollbars if your browser window isn't large enough. There's not much I can do about that...
You said the Gerald and Michael image had horizontal scrollbars for you - I guess your screen resolution is less than mine, as I have plenty of spare space to the right with the image you eventually posted (it probably helps that I'm viewing it on a 19" widescreen display). Whether other people get scrollbars will depend on their screen - just because you did doesn't mean other people would have. Equally, just because you don't get scrollbars now doesn't mean that no-one else would (if you viewed this site on a phone or PDA or other similarly small-sized device, you'd still get scrollbars). That's something neither you or I have any control over.
Incidentally, when you attach an image, if you click on the attached image filename, the image will be displayed in a separate window...
Something else I will say, is this forum is to a large degree on it's default settings with "one size fits all". If there's a particular setting which isn't working very well for the way we want to use this forum, then I'm quite happy to try and tweak the settings. Just drop me a message, either in a public post or by PM. You should have to put up with being frustrated (provided your frustrations are reasonable...)