I think I understand what the problem is. Check out this thread where Christina explains how to set your editor preference. The screenshot helps too btw.

http://www.pascalgamedevelopment.com...-Configuration

Unfortunately we were not able to batch set this option for each exiting member when we converted all the accounts over to the new site. However once you set it to the WYSIWYG Editor you'll have your formatting options and the ability to upload images and post YouTube videos and the like.