Oh you are talking about the bbcode? It seems that you have disabled the allow_url_fopen property in php.ini. For this reason you won't be able to read your image file from a different url. Do you have access to your php.ini file? If so, find the keyword 'allow_url_fopen' and set this value to be 'on'. And then, problem solved.
Here's what I found after seeing your siggy.php warning/error log, which confirms my conclusion:
PHP Code:
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<b>Warning</b>: readfile() [<a href='function.readfile'>function.readfile</a>]: http:// wrapper is disabled in the server configuration by allow_url_fopen=0 in <b>/home/itsumoon/public_html/ash/dd/adopt/siggy.php</b> on line <b>146</b><br />
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<b>Warning</b>: readfile(http://www.adragonsden.com/adopt/stage1/pika1.jpg) [<a href='function.readfile'>function.readfile</a>]: failed to open stream: no suitable wrapper could be found in <b>/home/itsumoon/public_html/ash/dd/adopt/siggy.php</b> on line <b>146</b><br />
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<b>Warning</b>: Cannot modify header information - headers already sent by (output started at /home/itsumoon/public_html/ash/dd/adopt/siggy.php:146) in <b>/home/itsumoon/public_html/ash/dd/adopt/siggy.php</b> on line <b>151</b><br />
Readfile appears to be disabled on your host.
