An observation though, I tried to reply last night and upload a picture using the attachments option but I don't have any images on my laptop under 750kb, which it didn't like, but I then couldn't remove the image to post the message, so gave up.
Can see why the size is limited, server room, hosting costs etc which is why I said 3rd party site, just don't remove the pictures!
My reasoning for Picasa (google) is it doesn't run out of bandwidth like photobucket, how many forum posts have you seen with the 'bandwidth exceeded' picture rather than the picture that should be there...