Insert image from URL in WordPress, like flickr or Videos from youtube is very easy. Using images from Flickr make you blog or website more interesting to surf and you will also save a space required to store your videos or images. You can also upload images in wordpress post or pages from google picasa or videos from vimeo. Putting your media files in external URl also reduce bandwidth usage on your server and also a great way to do marketing of your content.
Check out the following video for detail tutorial
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