As others have said, it would appear Photobucket want $399 to upgrade my account so I can do third party hosting. I don't mind paying some money but not that much.
Then you might be interested in
ImageShack, which I use. It’s $3.99 per month, payable by PayPal (which takes care of the currency conversion).
I used it when it was free, until ImageShack did what Photobucket is doing now. At the time it had an awful user interface and viewer experience, again like Photobucket does now. However, when they started charging they greatly simplified everything, removed the ad infestation, and generally made it a nice thing to use. So I reluctantly coughed up the fee ($1.99 a month then).
All of these free services will eventually go under, lose your data, or start charging overnight.
Your best bet if you don’t want to pay is probably Flickr, since it’s massive, owned by a semi-reputable company, and used by serious photographers (who would sue if Flickr did something too crazy).