What would be good though is if someone could write a utility to do the business automatically.

Flock browser already will upload to photobucket any pictures you drag and drop onto the Flock auto uploader, into any directory in photobucket account you have access and password to (one time setup). If you could combine that with a utility to take the photobucket image tagged url for each pic, and load into a ybw post, everyone would be onto a winner.