I have photobucket (i use the free stuff cause i'm cheap), and it has always worked for me. There are sometimes that the site is down, so the pics won't show for a little, but it really isn't a big deal.
I also found that
http://www.bolt.com works good for having pictures. It is not just a site to upload photos, it is kinda like myspace---note how i said KINDA lol. But you can upload photos on there and I never had problems with linking them to other sites.