If you cannot upload pics to your blog on blogger, you are not alone. When I tried a few times today, the browse option, for selecting files on my laptop, did not show up. If this is happening to you (apparently happening mostly to IE users but also to some FireFox users), switch to HTML when you want to add the photo. There is also an add photo icon there. Click on it, the browse option should show up, select the photo from your PC's files, do what you pretty much normally do and it should then show up as HTML code. When you switch back to the 'compose' mode, the pic should be there and they say you can edit it as usual. I am about to try to post my ugly mug in this post to see if it works.
If we can see my pic, then it worked. Ah, yes it worked - sorry for the mug shot.
By the way, I am amazed to have found out the fix so quickly once I looked. It was on the Blogger Buzz forums (or something like that).
You can use this link to get there (probably a good link to bookmark):
Then, scroll down to the list in the center of the page, I selected "Something Is Broken" and scrolled through it until I found someone reporting the problem and whose posted question had a few replies.
All the best,
This Is Just... Odd.
5 hours ago