This plugins embeds image links in comments with the img tag so the image are visible in your comment timeline.
Image formats supported: 1. .jpg 2. .gif 3. .png
You can specify your comment width so the images are fitted nicely. Images are not hosted on your server neither this plugin pickups any data.
Do note that people can link extremely large images and your page loading can be compromised because of that.
Demo: Embed Comment Images
This plugin is available for download to be used on your WordPress self-hosted installation.