Check this out... I think it will do what we want
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ImageShack is a free image hosting solution. It can be used to share pictures with friends, post images on message boards. It can also be used to direct link images from your personal website or eBay auction. And best of all, it's completely free.
How does it work?
Click the frog logo or the Upload link to be taken to the front page. You can also click the upload button in the upper left corner. Select browse and find an image that you want to upload. Select that image and press OK/Open. Then press the upload button. After a short while (depending on your image size), you see three boxes with a links to your image. The first one is an image enclosed in [img] tags so that you can post it on message boards. The second is a link already parsed in HTML for easy hotlinking on your personal website or ebay auction, and the third is a dynamically generated page that you can use to link to friends.
Does ImageShack allow direct linking?
Direct linking is embedding an image into a message board, personal webpage, or ebay auction. Yes, this is allowed.
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The great thing to is that:
"we do not require you to register, or even login. This not only preserves your privacy, but also creates a hassle-free environment for hosting your images."
and
Images are hosted for up to a year!!
http://www.imageshack.us/
What do others think?