I've written about Box.net, a service that provides 1 GB of free online storage. To increase the adoption, Box.net has released a new service called Box.net Lite, that allows you to upload a file of up to 10 MB and get a direct link.
You can upload any kind of file and there are no traffic limitations. You don't have to register, although you have to provide an email address, so that if you decide you need to manage your uploaded files, you can sign in for a Box.net account. If you don't want to do that, test@example.com seems to work.
For photos, you also get a thumbnail, so you just have to copy-paste the code into your blog. I think this service is a good replacement for All you can upload: you don't have options for resizing, but you can do that with any image editor, and you can upload more than photos.
If you upload audio files (I've tried only with MP3 files), Box.net offers you a very slick Flash player, so you can embed it into your blog.
All in all, this is a very good file hosting service if you don't have a domain or you don't want to pay for the traffic.