So I am still having my picture problem.
I was in the picasa forums and I was referred to this:
Apparently they have classified my blog as "spammy" so I can't upload pictures until I make a post and use the word verification system to make sure I am not a bot. Frustrating. I suppose this is a problem with new blogs that don't have a lot of content yet. Still, for a new user this is not a good first impression.
WordPress, the open source Blog is starting to look better and better... I just need to find some free hosting somewhere. Also, I wonder if blogger has categories yet... more to come.