I am building a small social web application. I am developing it with rails. I want some cheap or free image hosting which I can use as my image repository for my website because I can't afford Amazon cloud store or something like that. Can I use flickr, imageshack or service something like that? Do they allow me to store images for my website? Suppose I wanna use pics for blogpost and I will be extracting pics from their api and show on my blog post. Is that possible? Sorry I'm beginner.
Option 1 : Cheap Shared Hosting (Why not just start with it and worry about network usage later?)
Option 2 : Use IMGUR.com ! Its free for non commercial use and has an API. More : http://api.imgur.com
Is the API service needed for remote uploads and to let users upload images? If you plan to use images for blogspot or another blog whey not use their service to handle the images? You can signup with any one of the many unlimited shared hosting companies which have great storage space.
Amazon also has a free for 1 year micro instance. Space is limited but should be enough to get you started.
But from reading your question about a blog post and images. I would just setup an account on blogspot and upload images to my posts and pages using their interface. Not sure though what specific requirements your rails app needs though?