I believe you are referring to adding GDWPM images to a page within WP. I agree that you can do that. I am referring specifically to inserting GDWPM images into the plugin “Photo Gallery”. I now have verification from Web Dorado (who makes the Photo Gallery plugin) that they do not support remote access to images. (You can check my post on the Web Dorado forum if you are interested.)
site.com I figured out how to disconnect the site at wp.com and I reinstalled WP through iPage. Now I get a DNS error instead of a 500 error. So I am on the right track. Maybe I need iPage to reset my DNS.
I may have screwed things up. Somehow I got into wordpress.com and started seting up the site there. When I realized my error I came back and reinstalled wordpress.