Since I upgraded, I do not see this as an option anymore Am I just missing it or has that feature been changed?

I think it's in the theme settings.

Make sure you fill in the Path and URL setting for Photo Attachments. It's under the "User Settings" of the config file.

If you fill that info in, then users can upload. Otherwise they can only link to them.

BTW - what do people have as their maximum size for images / files?

there we go, for some reason I must have been braindead and just missed that But either way its working now, thanks.

Oh, and I have my avatar limit set to 15000