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Photobucket is allowed, so long as you make sure that there are no hyperlinks leading back to your Photobucket gallery in the IMG. (If you use the IMG tag code from their site, it will leave the hyperlink.) We also have our very own
Gallery, where you are welcome to upload your images. It does take a little longer to get your images in the gallery as all images must be approved by the moderation staff, but at least you know you aren't going to get in trouble for posting something you shouldn't!
As for posting images that are too large, the best way to do this is to use [SHOT] tags. They will leave a smaller version of your image that you can then click on to see the full sized image, like so:
Code:
[Shot]http://www.piratesonlineforums.com/gallery/data/500/CropperCapture_16_.png[/Shot]
The only thing you have to note when using Shot tags is that since it is a custom BBCode, there are a few flaws. For it to work properly, you will need to uncheck the "Automatically parse links in text." Otherwise you'll just end up with a hyperlink and a bunch of messy HTML code.

Hope this has helped, and happy holidays!