http://www.flickr.com (note: no "e" in flickr) is a free photo hosting service. Basically, if you want to post pictures here you need a photo host. The advantage of using flickr is, not only is it free, but they allow us to grab captions etc. along with the picture which allows us to display this information with your picture. Also, they have some slick uploading tools that allow you to upload in batch, resize automatically at upload, etc. It's a no brainer if you don't have a photo host.
Also, you don't need it for chat. For chat you just need to make sure you have the latest version of flash installed.
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