If you use a third party template or customize the design of your blog, chances are you'll need to find hosting for images used in the design.
Many Blogger designers use Photobucket, Flickr and other free image hosting solutions. It's also possible (albeit unnecessarily complicated) to upload images to Blogger or Google Sites.
But my personal favoured image hosting service is Picasa Web Albums. This free Google powered service offers unlimited bandwidth and a generous 1gb of storage - perfect for serving up any images you need for template visualisation.
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