I found a very helpful blog post on Blue Eyed Beauty Blog. Helen found the solution to the problem. I now upload my pictures to Picasa and resize them to 800x600, which will NOT go against your picture count. I also can watermark my pictures at the same time. A double benefit.
This has been a huge blog saver for me, as I do not have a store, or sponsors. I just enjoy blogging and sharing about my quilting and thrifting experience.
So check out Helen's post Fixing Photo Limit Problem.
And then have a Happy Quilting day!