Blogger Images let you quickly upload and post pictures to your blogspot blog from either the Picasa Hello desktop client or the web based interface of Blogger.com. You can upload images in JPG, GIF, PNG, TIF or BMP format.
Now blogger officially provides you with 300 MB of free hosting space but unfortunately, there's no way to manage photographs that you have already uploaded to your Blogger webspace. So you will never know how much storage space have you exhausted and there isn't an option to delete existing pictures hosted on Blogger.
Technically, if you run out of your blogger image space, you can always open another blogspot blog for uploading pictures and then link to them from your original blog but we have never heard anyone facing the "space finished" issue.
Recently a similar concern was posted on the Blogger group that how do you find out if you are close to the 300mb photo limit and a Blogger employee dropped a hint saying - "Blogger automatically compresses your photos when you upload them, so you shouldn't worry about running out of space :) "
The smiley does say a lot of undocumented things about blogger images. They are probably providing unlimited space for saving your pictures but not willing to go public with this information.
Related Reading:
»Where to store CSS Images for Blog Templates
»Free Picture Hosting Sites for Blogs and Websites
