Sometimes, on IE there is a browser thing that makes you save things only in bmp. Here's a link that may help with that problem; http://support.microsoft.com/default.aspx?scid=kb;EN-US;q260650

something else you can try is right-clicking the icon and click "properties" copy the URL and when you go to manage your images, paste it in the "upload from URL" box. this is not hotlinking, because livejournal saves it to the server from the URL, and you can upload it that way. hope that helps!

Other browsers such as Opera and Mozilla don't have this problem, so using a different browser is another option.