Hi Dan, we've always allowed pic and video uploads when making a Story note. You'll see some if you browse through the Stories.
Which background image are you referring to that isn't sizing properly?
Do you have plans to allow users to post pics of them passing along the butterfly coin?
Also, the background image behaves oddly. If you resize the browser window, the background grows larger and smaller accordingly. It's really difficult to get a 1200 pixel-wide image to display properly, unless you make the browser window very narrow.
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