I have been searching and searching but i cant seem to find the right plugin, but i dont need anything that complicated. i need a simple plugin that allows user to upload images to my wordpress blogg and displays the images in posts like this:http://9gag.com/ (already have their theme but not the script it can run on? how can i do this MUCH APPRECIATED!!
You can configure Gravity forms to allow file uploads and direct them to post, using custom post types, where ever you want. It's not too complicated, but it's also not a free plugin: http://www.gravityforms.com/
Why don't you keep a normal contact form submission and then publish yourself. Giving automated publishing rights might not be the right thing to do especially if you are using Adsense etc. as it might be an image not conforming to Adsense TOS. All the top contact form plugins in wordpress including the Contact Form 7 and Fast Secure Contact Form allow you to enable image attachment.
thanks for the responses guys, i managed to work with a opensource plugin Newgen and use a seperate plugin Newgen public uploader plugin together they did the job. @waziuz this one allows me to moderate a image before i publish it so it should do the trick. once again thanks for taking your time to respond, i almost gave up on DP when it comes to responding to certain threads!! thanks!!!