Threadwatch reports that Google has began "doing online photo storage" at Picasa Web Albums. I quickly tried it out and made a test album. It appears you cannot upload gif files from the web interface -- seriously. In any event, like Flickr, you get a certain amount of free space and then if you want more, you can pay. The Picasa learn more page says that you get 250MB of free storage and if you need more you can upgrade to an additional 6GB of space for $25 a year. Picasa Web also has RSS and other sharing features.
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