It's most likely a problem with the wysiwyg editor doing something to you that you aren't seeing. I often recommend disabling the wysiwyg editor. A lot of times wysiwyg editor issues go away as soon as you try to make them happen deliberately - so just trying again later might work. There might also be some value in taking a look at the link/code you are trying to use for your photobucket image. If you want to try that, you should probably be able to post the link as plain text - like http://whatever - but if you are also trying to paste some code around that, you may have to explain it instead (since it's giving you an error).
Short answer - yes. For plain text it is extremely simple. If you are willing to learn a few simple codes you can also do all the bolditalic and underline you want. You can also embed inline images like this and create links like this. Check out How To GameSpot for more information. One other tip would be to avoid having extra spaces before the beginning of a paragraph (like trying to indent) or after the end of a paragraph (which would just be a habit or something). Having extra spaces between paragraphs causes them to collapse together - if you ever see that happen, now you know why.
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