The problem is that you have attached the picture clicking on "Insert Inline" button in the File Uplad Manager window. Try to upload it again and then click the "Done" button only. You can edit the post above for that or post another one with the Submit Replay button when choosing Edit Post/Go Advanced buttons.
I give up..................
I make the file 600 wide............. to big
I make the file 200 high............. tooo big
now it's not sharp...... not happy with it.