SmugNDrag automates the generation of image links suitable for blogging: an embedded image which when clicked navigates to the full image in the SmugMug gallery. It understands SmugMug naming convention to render the correct image size and can optionally populate the image description.
It's pretty straight forward to use, simply navigate to the desired image at SmugMug in your browser and copy the url to SmugNDrag. The resulting url is copied to the pasteboard similar to the Share functionality at SmugMug, only with a richer link.
It's available here. Feedback welcomed. If you use it, post your blog in the comments.