It says I've reached my 1 GB quota for photos and ask me to upgrade it for..... (not cheap) What a pain!
I tried to google it and found that many having the same problem like me. We can actually link to another photo host without paying a cent. Thanks god!
I found this is the easiest and simplest method (for me).. it works finally :
Uploading pictures to google+ - you must be signed up for Google+ and switch your blogger profile to google+ account.
You can then upload and share the photos to google+, pick the photos from picasa web album, upload- DONE
Photos up tp 2048x 1048 pixels and videos up to 15 mins won't count towards your free storage
Other alternative that work the same way, uploading photos to
- flickr- copy and paste to blogger post (most popular)
- picasa- I have a ton of duplicate photos in picasa album, I wondered what's wrong with it and dare not to delete any of them.