(1) Are you creating posts on the main page of WordPress.com at this link? http://wordpress.com/#!/post/
If so, don't do that. Create posts on your own blog's dashboard at this link instead. http://talesfromhebei.wordpress.com/wp-admin/post-new.php
(2) Are you using the secure https:// login?
(3) Exactly which browser and version of it are you using. If you aren’t sure click here to find out > http://whatsmyuseragent.com/
Note 1: If you are using an IE9 browser in compatibility mode that makes it render as IE7 and IE7 is not supported. To disable see > http://www.sevenforums.com/tutorials/1196-internet-explorer-compatibility-view-turn-off.html
Note 2: If your browser version is outdated you can upgrade it here http://browsehappy.com
(4) For details about the options for uploading images see:
(5) For troubleshooting images tips see > http://en.support.wordpress.com/images/troubleshooting-images/
Prior to uploading any image into your blog, regardless if it’s a header image, a featured image, an image in a post or page, in a Post format (Gallery or Image), an image for sidebar display in an image widget or a text widget, you can optimize and re-size it in either a desktop image editing software or online image editing software to fit the space you intend to use it in. By undertaking proper image preparation first you will get the best image quality, won't be wasting your media storage space, and won't be wasting your time troubleshooting.