I found this image via a Flickr Creative Commons search. Just to be extra safe, I asked the photographer if I could use it on my blog. Then I right-clicked on the image and copied its Flickr URL, pasted that Flickr URL right into my image field in Drupal, and slurp! It's on my server! Not bad!
I am still having an issue in that I can't see images I upload via Fielfield Sources in IMCE, the image browser that let's you pick an image from your server to put into a post. This is a classic example of the kind of thing that, understandably, frustrates developers and users alike. If there are images on your server, and you click "browse images" in Drupal, you expect to see them all there, and be able to drop them right into your posts. In the world of open source CMS software, sometimes things don't or can't work perfectly, especially when you're using the newest version. I often hear "Forget it! Let's just build it in WordPress!" when these kinds of things go wrong. I love both platforms, but they each have their strengths and limitations.