Oh but sometimes it will! If you click on Add Images, there are options to upload from your computer, Picasa, or a URL. Right-click the image you want and select Copy Image Location, and then paste that URL in the blogger box. It doesn't always work but it usually does. And it took me forever to find that once they rearranged where it was. Hope that helps!
D'oh, I meant to add that I really like your futon cover! Will get get pictures once it is in situ? I know that's pretty rich coming from me the non-poster but I would love to see the pattern in action.
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