The trouble is that DW's image hosting is still not up yet. Mark is working on the code and they're going to have a way to upload pictures by emailing them to DW's servers very soon according to this week's newsletter. But an actual Scrapbook like LJ has is still in development. When there IS a DW Scrapbook, then there will be an option to upload to a DW server, but until then, they require a URL to an image uploaded to an external host. I hope that made sense! :)