No one seems to be getting this to work. :-(
So here's the step by step instructions.
1. Get the URL of an image on the clipboard.
2. In Fargo, click the + icon in the left margin.
3. Enter a title. Press Return. Tab. Type some text.
4. Click the suitcase icon in the left margin.
5. Click the + button in the dialog.
6. Enter img -- then tab over to the value column and paste the URL.
7. Click OK.
8. Click the eye icon in the left margin.
9. You should see the image on the post.
I did it on this post. It worked!