Twitter's been on a slight roll this week. They finally slashed old Twitter and now they're letting you add pictures to your tweets from within the tweet box. To do this, click on the little camera icon that shows up in the tweet box. This will prompt you to add a picture from your computer. After you attach your picture, the camera icon will turn blue and your picture will show up, scaled down, in the bottom left corner of your tweet box. In some cases, the picture shows up as a file name. If you've selected the wrong image and you want to remove it, click on the 'x' that shows up on the top right corner of the thumbnail. Then add your text and hit tweet.
Pictures show up in Twitter itself
This feature is facilitated by Photobucket. Previously, users had to use services like Twitpic, Lockerz or Flickr. You will still be able to use these services and view other images from these services. Within Twitter though, a link (using up some text space) shows up as pic.twitter.com/code. Images can be upto 3MB. There wont be galleries of user images yet, but Twitter is working on it and will roll those out in the coming weeks.