However, Photobucket have introduced a subscription for hosting images that are to be featured on third party websites, and at $399.99 per year it's a little pricey!

The new kid on the block in terms of image hosting websites appears to be Imgur [www.imgur.com]. It's very intuitive and best of all it's absolutely free!
Instructions for uploading and adding images to your reports can be found here:
UPLOADING IMAGES
If you have hosted your Avatar on Photobucket then you may also have to rehost this on Imgur.
Instructions for doing so can be found here:
ADDING AN AVATAR