I use my ISP, Internet Service Provider to host pictures. Some people may not be aware when you sign up for the monthly service to get an account and on the internet you get other stuff besides an email address. You might get 5 megs of storage to host your own mini website. Contact your ISP your mileage may vary.
In my case I have 10 megs. Most of which is taken up with family PDFs of documents and such. But I also put up 3 pics of the Mayberry bus candidate and linked it to a forum message. Using your own ISP space gets rid of any ads which is good for the dialup guys. Also keep the photos small in size.
You can download IrfanView, a free for private use photo program, that will do about anything you would want. It resizes, changes formats, makes thumnails etc. Great program. Just type IrfanView in Google and it'll bring up the webpage where you can download it.
Wade