unable to post IMG

this is with the img tag

the attachment fails with "11275877_atom-heart-mother.jpg
Upload failed due to your usergroup's upload quota. This file will require 497.1 KB but you only have 1 Bytes of 1 Bytes remaining."

img tag converts to this;

Code:
this is with the img tag 
ack, looks like code tag is broken also, it should display the actual code but it is stripping it out.