I'm not sure what the rest of you use, but I have been using various google services for my image hosting. I started with google sites but then switched to google docs due to it allowing me to arrange things into "collections" (folders) as well as set individual permissions rather than having to have the entire site public. My temper has been flaring as of late, however. It seems that no matter what I do with the permissions (setting "anyone with the link can view" or "public on the web" or checking the "anyone can edit without signing in")... the image links keep asking for logins. When I email, this is just an annoyance for those trying to view them. On a blog, however, they just show up blank.
It's hard to test these, as I need to log into google docs, get the links open in a browser, then log out, quite my browser, and then re-open to see if the links are still viewable. If not... log back into google docs, fiddle with settings and start again.
Well, enough with that. I have settled on imgur. I think I actually ran into it via one of Luke's News Bits posts at CSA but I can't find the post. Anyway, the site is ridiculously simple. The links are amazingly short compared to the ridiculously long google docs links (though, I suppose I could pipe them though something like tiny url). In reading through their FAQ, things seem pretty straightforward. They cut down sizes to about 1MB upon upload, keep your images as long as they get 1 view every three months, and you can upload as many as you want. I dig it.
Oh, the other thing that has irked me with google docs is that I have proven that after fiddling with permissions, they change the link address to an image. This means if you email someone a picture, realize there was an access issue and then change it... the link you sent is useless. With imgur, you can edit the image and the link remains the same.
I'm loving it.
P.S. What do you use and are you satisfied with it? Have I been hassling myself with google docs unnecessarily all this time?