Man, you're hard to get in touch with. Thanks to some deep-seated resentment between Blogger and Firefox on Linux, I can't comment in your blog. Consider this a freebie tip to typecasters out there looking for image hosting solutions:
You're dead-on right with the space limitations of Blogger storage and the bandwidth limits of Photobucket. Flickr's free account, however, is not limited. It will only show the most recent 200 shots in your stream, but you can always link back and embed old ones, and your old blog entries won't be image-free. I'm trying to make a point of either throwing all my pictures up here on the blog where I can search for them, or dump them in a relevant Flickr group, which all offer a "show uploads from me" link.
So stand down on that credit card. You can use flickr, just make sure you grab the URLs of your old photos first. If you want the full-magilla storage option, then go pro, but if you want to use it as a handy dumping-ground for blog images (my method) then you don't need to pay.
That is all.