I haven't managed to get Dreamwidth's hosting to work. Sometimes it does and sometimes it doesn't and I don't know what makes it work when it does. I use tinypic, which is free, and is what I was using before. It's owned by Photobucket. I do worry one day they will all disappear because someone has sold something.

But with all the Tumblr people arriving, a lot of people are posting guides to using Dreamwidth's image hosting and at some point when I have some time I will sit down with one and try and work out what I am doing wrong.