Many of us host photos on Photobucket.com and then link/display the photos from there. I don't recall the storage limit but it will hold plenty of photos.
When uploading photos for web viewing, there are two factors you should consider. One is actual image size, in pixels. Typically, you only need 600 to 800 pixels on the long side, which will give a decent size image on most people's monitors. The next factor is image compression. When you save an image as a JPEG, you can usually select the quality or compression level. The more you compress it, the smaller the file size it. I find that you can compress a file quite a bit before it starts to look bad.
If you re-size the image and then compress it, you should be able to get the image well under 100kb.
Don't forget to save the file as a 'for web' copy of you image, and keep the original file at the original size.