Unfortunately Photobucket offers only 500MB free storage since August 2009 - they lowered it from 1GB. :(

Photobucket is another site that I recommend the casual user. This is probably my favorite of all the free photo hosters out there. What I really like about photobucket is that they really streamline the process of uploading, tagging, and linking photos. They also provide a good amount of space for photo upload. The user interface is extremely user friendly. You can create folders very easily and the sharing ability is also a plus. The only problem with photobucket is the downloading feature is a bit laggy. I also find it extremely painstaking to download the photo’s that I’ve just uploaded onto a different computer. I

Photobucket is a pretty decent photo sharing site. I like how easy it is to share pictures. My photos often take a long time to download, though, and it's not unusual to get at least one error message in a batch, which means I have to re-load it.
Making a slideshow is relatively simple, but they don't allow you to add your own music. They also make it difficult to make albums 'private', something that concerns me because I have children.
Essentially, Photobucket is a good basic site for adding photos and sharing, but if you want something more involved with more features, there are better sites out there.