Question images showing in threads?

My users have expressed that they would like images showing in threads rather than attachments. I know there is a URL option, but they don't have anywhere to host their images and then reference them by using a URL, so attaching files is perfect, but is there anyway we can have them show in the forum thread rather than clicking the attachment to show the image??

normally this should be possible, but it seems that this is no longer working properly due to a bug
i may need to correct i noticed that the website where he didn't post it had the Kunena Forum: Configuration tab uploads under Allow Image Uploads set to everyone. As soon as I set it to registered users it works fine

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Ok, hopefully the bug will be fixed in the next update whenever that will be?

I think you had read my post before but I have modified it slightly it could also be a setting see the attachments in that post

Yep, have re-read your reply.

I already had the image uploads set to registered anyway. 
So just to be clear, when you attach an image as you are writing a post, it does appear, this is good, but what i am talking about is AFTER you have posted it, it only shows a link, not the actual image in the post, like my screenshot.
I would like users and myself to see a smaller image in the post, not the link, bit like a thumbnail but a bit larger. When clicking on the image in the post, then it appears full size.

Hope you understand what i mean?! 

ACTUALLY.... just noticed in these forums, the image does appear, this is what i want!!! How do you do that???????

actually it should work so it might be useful if you post a Configuration Report here on the forum
docs.kunena.org/en/manual/backend/tools/report-configuration