i've been using photobucket for many many years, as long as i've had the internet, and i've never had a problem with the storage space, they continually move the limit up, and I think it might depend on how long you have been a member, mine is 2gb normal, plus 8.1gb "reward" not sure what the reward is for, but i've only used 1% of that and i've got well over 1000 pics in mine, and a few videos.
also, if you resize your pics to a web viewable size it drastically reduces the size, from like 4mb per picture, full resolution on the iphone, to like 300kb which is perfectly sized for this forum