A (very) customised Windows 98 SE, which probably isn't the problem, and OperaUSB v10.63, which might be.
It has been known to do weird stuff, and the Opera browser is notoriously inconsistent between versions anyway.
Image hosting used to be very simple though. If you have any access to something simpler it may pay off in the long run. The more complex it is, the more likely that something, somewhere, will break. (For the record, Google Images is all but broken, and I read that Flickr has become so broken that professional photographers were up in arms and leaving it in droves.)
If you can find some host that caters to mobile devices that might be a quick way to get a service that MUST be minimal, because few mobile devices can afford to try handling the kind of bloat that gets routinely posted in 100 MB blog pages and stuffed down 10 megabit optical pipes onto 4 GHz desktops these days.
I'm pretty sure yours isn't that bad, just saying where things are going, some places on the web, and it's all going to hell if people don't figure it out first.