There is a space in the link. Usually web browsers will replace spaces with %20 but there is already a % sign there so it could be stuffing it up.
If you remove the space in the link it should work.
[IMG]http://a05-b05.mypicturetown.com:80/P2PwebCmdController/cache/uP%3Dz9D2Lqb7vA%25rr1vZx53ALKa0X*mROcOCgz0gSkAn*T% 25aM4MhB4K-fCFQBbip/item.JPG[/IMG]
Nup... maybe not.... the % sign is in the wrong location.... Just upload the image to somewhere else without the % signs.