For photos, I tend to use Flickr. You need a Yahoo ID, but Flickr is free (unless you upgrade to their Pro account, which I think is $30/year or so), and the free version allows 100MB of storage per month. I like the upload tool in Blogger, but personally, I find it easier to choose my size photo and then copy and paste the html from Flickr. Then you can use the blog post editor to align your images.
Try what the others have suggested first, for now, but I do highly recommend Flickr.