I'm not sure but I think the Google rules that you refer to pertain mainly if you post your pictures as "Public Albums". You can also make your Google album, albums or individual pictures private at the time of uploading and there-after only those you have have sent an invitation to that contains the URL key string will be able to view your material.
db

(The invitation could theoretically be passed around by your friends however..)

Jeff Wright wrote:
Maybe this?

Your Rights
Google claims no ownership or control over any Content submitted, posted or
displayed by you on or through Picasa Web Albums. You or a third party
licensor, as appropriate, retain all patent, trademark and copyright to any
Content you submit, post or display on or through Picasa Web Albums and you
are responsible for protecting those rights, as appropriate. By submitting,
posting or displaying Content on or through Picasa Web Albums, ***you grant
Google a worldwide, non-exclusive, royalty-free license to reproduce, adapt,
distribute and publish such Content through Picasa Web Albums, including RSS
or other content feeds offered through Picasa Web Albums,  and other Google
services.  In addition, by submitting, posting or displaying Content which
is intended to be available to the general public, you grant Google a
worldwide, non-exclusive, royalty-free license to reproduce, adapt,
distribute and publish such Content for the purpose of displaying,
distributing and promoting Google services.***
So, be careful what you post up there.  If you don't want other people to
see it, don't.

6. GENERAL PRACTICES REGARDING USE, STORAGE AND SERVICE
" You agree that Google has no responsibility or liability for the deletion
or failure to store or make available any Content and other communications
maintained or transmitted by Picasa Web Albums. You acknowledge that Google
has the right, at its sole discretion, to limit the number of transmissions
you may send or receive through Picasa Web Albums or the amount of storage
space, bandwidth, or other resources you may use, and Google has the right
to terminate or suspend your account based on usage that exceeds these
limits.    You may elect to purchase other services or resources such as
additional storage space.  Payments for such purchases are nonrefundable."

And

13. DISCLAIMER OF WARRANTIES YOU EXPRESSLY UNDERSTAND AND AGREE THAT:
YOUR USE OF PICASA WEB ALBUMS IS AT YOUR SOLE RISK. PICASA WEB ALBUMS ARE
PROVIDED ON AN "AS IS" AND "AS AVAILABLE" BASIS. TO THE MAXIMUM EXTENT
PERMITTED BY LAW, GOOGLE EXPRESSLY DISCLAIMS ALL WARRANTIES AND CONDITIONS
OF ANY KIND, WHETHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO THE
IMPLIED WARRANTIES AND CONDITIONS OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE AND NON-INFRINGEMENT.

IOW, if we delete your pictures and you have no backup, tough cookies.  We
don't owe you jack.
http://picasa.google.com/web/tos.html

This is also why I'm not using Team Apps.  They want all the action, but
none of the grown-up responsibility.

-----Original Message-----
Why not Google's Picasa? It is specifically designed for photo storage
and has many useful features for sharing photos. Maintains and uses the
EXIF metadata.

Supports Mac, Linux, and even Windows.

1 GB is free, 10 GB is $20/year, 40 GB is $75/year... 400 GB is
$500/year.


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