Actually does support many image types!!

It says it only supports jpg, but I tried png and it works! You can delete the text that says it only supports jpeg in the Settings > Comment Image and you’re good to go.

I haven’t tried .gif, but I’m sure it works as well. Most modern browsers let you put any image extension on any image and it knows what to display.

Lost 1 star because images are forced to be a certain size. Lets say you set thumbnails to 500px. If the image is only 100px wide, it will still stretch to 500px. Would be great to be able to show large images in comments without everything being stretched to max width.