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Free web hosting for images with direct linking allowed (hotlinking). 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. No signup required. Powered by highly reliable Linux dedicated server network. Limitations: File size limit 1.5 MB; File types allowed: jpg, jpeg, png, gif, bmp, tif, tiff, swf (Flash). Their FAQ states that the freely hosted images will not be deleted from their hosting servers unless the image files violate their Terms of Service (TOS).
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I'm using ImageShack(TM) for 1 year now and I recommend it. Very easy to upload images and flash movies and to link them in any way. I love the website design, very user-friendly and very simple to use. The host speed is fast. this is the fastest free host that I ever used, and very reliable, the page indicates 99.67% of uptime, leaving 1.33% of downtime, but I never noticed the host being down and never got complaints of my friends about it.
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