Attachments are easy enough. You have the pictures on your hard-disk, I presume. If you look at "additional options" below the posting form there's a button that says "manage attachments". Simply upload and voila, attached.
The other two (Flickr and Photobucket) I mentioned are hosting services. Free ones too. Just that every other "faker" has used Imageshack, I believe.
Like I said, the girl in those pictures is pretty. Quite stunning in fact. So no, I don't really think you'd pick someone more pretty as it's not necessary.
Why people do it, I don't know for sure, but I presume it's self-image issues. You wouldn't be the first, certainly not on here. You could ask one of the others why if you like, a couple are still members. It's always nice to be told you look good so I suppose that's a reason too. If I'm sceptical it's because experience has taught me to be
I was kidding about the breasts thing (although what straight man would say no to boobie pictures?!) but I do think you could instantly get rid of any "fake" question marks by posting a picture with a piece of paper saying "KKW rules" or something equally unique that couldn't have just been found on the internet.
Oh, and I've got nothing against Texas. I quite like Texans. But Australians tend to be smokingly hot. So I wouldn't mind being from Australia
Or living there so I could hit on all the hot ladies. Then again, if that IS you in the pictures, you're not too bad yourself.