How Do You Put Pics On Your Signature?

Can someone please tell me how to put pics on my signature, every time i put a picture it just shows the code.

FOR EXAMPLE......(look below) Epic Phail isnt it?

EDIT: ok i got it thank you guyz

Upload it to a place such as Image hosting, free photo sharing & video sharing at Photobucket sign up and upload a pic

Then get the IMG code and copy past it into ur sig

Photobucket and use [img] or a forum/bulletin copy/paster.