Picasa Add to blog button

I’ve found a plugin for Picasa that adds a button to send the photos you have highlighted to flickr. (https://picasa2flickr.sourceforge.net/) I would like some help in getting this to work with WordPress so the my wife can select some photos and hit upload to wordpress and it would stick them in to a new post. Will someone please help me? It seems that wordpress doesn’t like to handle images very well, and I’m not too sure on how they can talk to each other.

Here are the steps it currently takes
1. Using a custom “BlogThis” Button, picasa posts XML data (photos URL and titles) to a custom URL;
2. On this URL, a CGI script parses the XML and provides photos URL and titles to a dedicated Java applet;
3. The Applet retrieves the photos and upload them to a flickr account.

I would like it to instead send the data to a script or whatever needs to happen so that a blog would open up a new post and insert code for the image just like when you use the upload photo tab. Any ideas?