Ok I managed to figure it out.. Woo hoo.. Here is my code for people that need to do same.... This works in all browsers. And thanks to the guys that helped..
The code below will do the following
Submit to a specified category
Write the article
upload 2 pic's and submit to an article
this is the HTML code
<div class="form_item"></div>
<br /><br />
<div class="form_item"><div class="form_element cf_textbox"><label class="cf_label">Title:</label><input class="cf_inputbox required" maxlength="150" size="30" id="text_5" name="title" type="text"><a onclick="return false;" class="tooltiplink"><img src="components/com_chronocontact/css/images/tooltip.png" class="tooltipimg" width="16" border="0" height="16"></a><div class="tooltipdiv">Title: :: Your story title please!</div></div><div class="clear">ย </div></div><div class="form_item"><div class="form_element cf_textarea" style="width:600px;"><label class="cf_label">Show and tell:</label><br />
<table border="0" cellpadding="5" width="900px" >
<tr>
<td>
<textarea style=float: left; class="cf_inputbox required" rows="10" id="introtext" cols="50" name="introtext"></textarea>
</td>
<td>
<div class="Youtube"><strong>Please type in your ideas or add videos from YOUTUBE. Example Code:</strong> <br />
<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/Ll2kajMH2u0&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/Ll2kajMH2u0&hl=en&fs=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
</div>
<div class="clear">ย </div>
</td>
</tr>
</table>
<?php
global $database, $my;
$query = "SELECT id FROM #__users WHERE id = '".$my->id."'";
$database->setQuery( $query );
$userdata = $database->loadObject($userdata);
?>
</div><div class="clear">ย </div></div><div class="form_item"><div class="form_element cf_textbox"><input class="cf_inputbox" maxlength="15" size="30" id="text_7" name="created_by" readonly="readonly" value="<?php echo $userdata->id; ?>" type="hidden"></div><div class="clear">ย </div></div>
<div class="form_item">
<label class="cf_label">Image 1:</label>
<input class="cf_inputbox" size="20" id="file_1" name="file_1" type="file">
</div><div class="clear">ย </div>
<div class="form_item">
<label class="cf_label">Image 2:</label>
<input class="cf_inputbox" size="20" id="file_2" name="file_2" type="file">
</div><div class="clear">ย </div>
<div class="form_item"><div class="form_element cf_captcha"><label class="cf_label">Enter code as shown</label><span>{imageverification}</span></div><div class="clear">ย </div></div><div class="form_item"><div class="form_element cf_button"><input class="button" value="Submit" name="undefined" type="submit"><input class="button" type=button value="Back" onClick="history.go(-1)"></div><div class="clear">ย </div></div>
This is the on submit code after sending email
<p><span style="color: #0000ff;"><strong>Thank you for submitting your article!</strong><br /><br /><a href="cm">Go back to my profile</a></span></p>
<?php
$fulltext_template = "<br /><br /><strong>{file_1}</strong><br /><br /><strong>{file_2}</strong>";
$fulltext_template = str_replace("{file_1}", '<p><img style="max-width:500px;border:5px solid #eeeeee;" src="/components/com_chronocontact/uploads/showandtell/'.JRequest::getVar("file_1").'" target="_blank" ></p>', $fulltext_template);
$fulltext_template = str_replace("{file_2}", '<p><img style="max-width:500px;border:5px solid #eeeeee;" src=/components/com_chronocontact/uploads/showandtell/'.JRequest::getVar("file_2").'" target="_blank" ></p>', $fulltext_template);
JRequest::setVar("fulltext", $fulltext_template);
$_POST['catid'] = '20';
$_POST['id'] = '';
$_POST['sectionid'] = '5';
$_POST['state'] = '1';
$_POST['created'] = date("Y-m-d H:i:s");
?>
O and by the way check this youtube video.. damn funny....
http://www.youtube.com/watch?v=Ll2kajMH2u0