What you need to do is paste the HTML code that our site gives you to the HTML section of a blog entry (reached after clicking 'View source' in MySpace) and not as regular text. If the HTML code is pasted as regular text the pic isn't shown and all you get is some strange-looking HTML.
To copy the HTML code, you can select all of it using the mouse and press CTRL-C on the keyboard. To paste it, press CTRL-V once in MySpace.