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Hello? Yeah, hi. Is this the Helpdesk?

What I'm trying to do:
I want to put my photo on Blogger so that when I comment on other people's Blogger blogs, I have a little photo icon.

What I know:
When you click on "Edit profile" it has an option for uploading a photo. Not upload. A link. You can type in a url to a photo. Then there's this little link that says "click here for photo hosting" or something. If you click on that link, it takes you to Hello and Picasa.

So now what?
I HAVE Hello and Picasa from the days back before Blogger let you post photos to your blog. But I don't see how that helps me. Can someone tell me how to get a photo that's on Picasa onto my Blogger profile?

Please leave DETAILED instructions in the comments if you know how to help. Thanks!

UPDATE 10:27 p.m.
Damn, you guys. I am trying but I am JUST NOT GETTING IT. The Blogger profile asks for a "Photo URL" but when I put in a web address it gives me this error message:

"The file at the specified URL does not have an acceptable extension (.jpg, .jpeg, .png, .gif)."

Now WTF does THAT mean???? God, this should be easy. Everyone else is doing it. Why can't I get this??