Yes. You are using the wrong code - unless you are wanting to insert a picture into your description area using eBid's source editor.
You just need the bit after src= (as you seem to have sussed) when asked for a URL. PB does give you that as one of the options. Either the Direct Link from the 4 options given under an image or URL's for email, Yahoo messenger... if you go to the Generate HTML and IMG Code screen.