You need to go to your User cp, then scroll down a bit and click on Attachments. You probably need to delete some of yours to free up some space for new ones. Let me know if this works.
You are linking to the page the picture is on rather than the actual picture. Does Picasa give you tags when you are logged in? If so use them, otherwise you can right click on the picture, click Copy Image Location, and then use that link in an [IMG] tag.
Here is your pic:
[IMG]http://lh6.ggpht.com/_M5S7bLIpvCo/S2_9ikqgUII/AAAAAAAAAEo/dmhVxfEz3xo/s640/P2070094.JPG