you can try the following site
http://www.freeimagehosting.net/
or
you may try this steps
Go to post editor to create a new post.
Add (upload) the image just like you add any other image to a post.
Switch to Edit HTML mode.
You will see the code for the image, somewhat like this:
<div class="separator" style="clear: both; text-align: center;">
<a href="http://3.bp.blogspot.com/_nHEt80wjI5c/TKMqiP7JRnI/AAAAAAAABkw/Gnk-TVdfvo0/s1600/imagename.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://3.bp.blogspot.com/_nHEt80wjI5c/TKMqiP7JRnI/AAAAAAAABkw/Gnk-TVdfvo0/s320/imagename.png" /></a></div>
Notice the code has two URLs in it.
The first URL (in green) comes after “href”. This is the link to your original image. It should come with "s1600" in the path, like this:
http://3.bp.blogspot.com/………………………/s1600/imagename.png
The second URL (in blue) comes after “src”. This is the link of the image you see on your post.
We are only interested in the first URL, the one with "s1600". You want this URL since it is the direct link to your original image.
Copy and paste it your HTML.
Exit the post editor. You don't have to save post as the image is
already stored in Blogger server.
Good luck
Any ideas?