well a lot of image hosts are shutting down now. i used to use boomspeed although they only allow free offsite image hosting if you are either using your pictures in online auctions or else your pictures are of the US flag. They also enable you to host your site for free so long as it's under 1M.
I like netfirms.com to be honest. 25M of free space, and one banner ad along the top of each page, and that's it. Proper ftp access, also you get perl, and you can pay them to upgrade with php, more space and no ads etc.
Personally i use xcalibre.co.uk though, they kick ass, since they run a linux cluster, and they are run from livingston too, so they're mostly scottish, which i think is a good thing! :-D
my site at
www.polytheism.org.uk as well as the board at
http://openopen.cjb.net is hosted with them. they're not free but you get tons of goodies with the basic account like full linux shell account, the capability to list open directories etc.