I think most people here use Photobucket or a place like that for their pictures?

http://photobucket.com/

Have you looked at something like this? http://www.freewebsites.com/

Getting a domain name isn't that expensive. But I don't know about the size limitations and all; some places worry about bandwidth and other stuff too, even paid places.

GoDaddy is really cheap; http://www.godaddy.com

Have you looked at all the blogging places and what you can upload there, etc.?