I do perfectly well understand the need to limit images in posts since people may post large images and just ignore that it takes half a second to load on a direct T1 conn and maybe two minutes on a slow modem/adsl conn.

However, it gets a bit ludicrous when you disallow images included in Smileys? I posted 5 images, was forced to remove one due to including a Smiley, and then removed the smiley to keep the image. I am sure this can be sorted in the administration somewhere, I have experience from phpBB, not vBulletin so I can't tell you where but it would be reasonable to assume that the image limitation only were for images that are added from external source, and not the images that are part of the forum interface.