I gotta put a reccommendation here for http://www.fotopic.net. They give you 250 mb of free space, and great file management tools, statistics, etc. Direct linking is allowed, although it is limited, but IMHO the pros outweigh the cons. I've been using Fotopic for awhile, and am extremely happy with it.
"I don't need intelligent drugs because I don't know what they are. But I will put anything into my mouth that is given to me, whether it's supposed to go there or not. Because... I'm different."