Chacal, reliable website hosting can be free(you just have to jump through more hoops to upload files, not a big deal).
Also, I think that plan with the domain name thing would not work so, Justin I suggest you don't spend on a domain name. The reason why a domain name wouldn't work is that usually a domain name forms a kind of mask for an ip(you can google this if you don't know what it is, wiki has a good definition) but you can get the ip of a site so that it can have another domain attached it it.
Now, what a domain does is replaces the ip with something humanly readable/understandable/remember-able so if my site is like(bogus ip):
209.17.90.20
then you can think of me covering the ip with the domain and for this example I'm using a bogus domain
and the ip turns into:
somesite.com
say I have some directories on my site
the ip would go like this:
209.17.90.20/files/
and the domain would follow
somesite.com/files/
Here's a real example:
Photobucket's ip is:
http://209.17.70.11 and it works when you put it into a web browser.
For photobucket when I want to set a image url for a forum I put in: "http://s240.photobucket.com/albums/ff238/Lontahv/somephoto.jpg"
now I could also put in:
"http://209.17.70.11/albums/ff238/Lontahv/somephoto.jpg"
see the "/albums/ff238/Lontahv/" that part would have to be exactly the same for all image hosting websites for Chacal's idea to work.
If you're interested in hearing more just ask.
Justin: I use google website hosting for all my web hosting needs--I find that it's better than photo-bucket or mediafire.
All you need to do is sign up for a gmail account(pretty easy and you don't have to use it) and then go here:
http://pages.google.com/ and then just upload "files" No need to make an actual website.
You get 100mb of space--not that much but, if you're smart with compression of photos and files it'll take quite a bit of time to fill up. And if it does... just make another gmail account.
Also if you have a gmail account it opens up many more google services such as google video uploading.
Note: if you didn't already know this gmail accounts are free and you don't have to give away that much info.
Mod note: I fixed your one tag.
BAD
Currently getting some ink on my hands over at the Guild Of Ink-Makers (PyPRP2).