I've been using Photobucket for quite a long time. I currently have 535 pictures and 7 videos (five over 30MB) on my account. The only time I have a problem is, of course, when the site goes down. Other than that it's simply copy and paste the image tags into your post and you have a posted picture!
Heck the oldest picture in there was uploaded the day after I graduated, nearly 3 years ago.
Did I mention it was free? Yeah, can't beat that.