I have seen imageshack used a lot but have
never tried it myself until now.
Problem
Bloggers image hosting is limited (100mb) and does not work with
lightbox.
Solution
Imageshack works great with blogger and lightbox. It allows for easy
posting of small thumbnails that link to the bigger image. Normally the
thumbnail would link to a web page containing the full version of the
image but this is not compatible with lightbox (lightbox needs the
actual image). The fix is very easy: Simply change the image link to the
thumbnail link but remove the .th
from in front of the extension.
My ~~main~~ complaint is that the thumbnails are too small. I could get
around this by using the full image and scaling it down with css but
this would wast some of my 300mb per image per hour bandwidth (not
really a problem now but may become problematic with more readers).
Edit: My main complaint is that they loose images. Imageshack (along with
pretty much every other media hosting site) is great for forum posts, but not
for semi-permanent blogs.