Hmm, did you notice an announcement from google press a few days ago (I think ET covered it either today or y'day) ? It said that Google had acquired Picasa Inc.
If you've notice, http://www.google.com now contains a line which says
"Free from Google. Organize and find pictures on your PC. Download Picasa."
And, in true Google style, it made Picasa products available for free (similar to Blogger an earlier acquistion, and not to mention the famous GMail) ! Picasa has two main products "Hello" and "Picasa". The former helps you to transfer, store images online and use them from your BlogSpot. Picasa is a cool digital image library.
Give them a spin some time :)