It used to, which is why we switched to using the RFG Image Uploader.
Great, so save images and then upload to RFG or some other Image Uploader.
Nice idea. Is there punishment or just warning for the ones who don't?
Don't go upload all the images. There is a thread with a bunch of them already uploaded and we hate to do duplicates. There is no punishment, because they are completely disabled. Any image from dragcave.net will simply not work.