"Whoops! You're out of space. You are currently using 100% of your 1 GB quota for photos. Upgrade storage. Photos are stored in your Picasa Web Albums account and are included in your 1 GB free quota for photos. Additional storage you purchase is shared between several Google products and is in addition to your free quota. Learn more."
Funny that I've never had this issue on my other blog despite the face that is has been around longer. Oh well. I've found a workaround for now...let's hope it lasts.