dasBlog has native ability to automatically upload embedded pictures when posting via email.  This is really nice and painless.  Scott Schecter has nice post about integrating flicker with dasBlog. 

I used to maintain a picture archive that I wrote for my website.  Mine worked well but just the ROI was limited based upon the effort I put in it.  However, flicker is much nicer and more importantly has the bandwidth.  Their pricing structure is extremely reasonable.