1e480021_iness___Local_Search___Part_15__Additional_details
[Date/Area Affected / Issue] 11/01/11 Places Dashboard: Photos don’t work when you try to add photos using a link from another site [Reference URL] Places Forum Post [Additional details] 
Public comment from Google- All: We’re working on long-term changes to photos and photo uploads. It’s going to be awhile, so in the mean time, I strongly suggest you upload photos via your listing and manage them from your Picasa Web account.
Google Places (Maps & Local) | Understanding Google My Business & Local Search - Part 15
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