Cheap (free) and cheerful (no registration needed) picture hosting at:-
http://tinypic.com
Tiny because the url's tiny, not the permitted pic size.
e.g. http://tinypic.com/ljn00
Not for storage, just temporary hosting, images not accessed for more than 30 days are automatically deleted from system.
Allowed types: jpg, png, gif and bmp. Max size 250 k, autoresize if bigger.