Chevereto is a free script, written in php, that lets you set up your own image hosting on your web server. It is your hosting and your rules, say goodbye to the closures and restrictions. Currently the code is very tender, and is in its early versions. Click here to see live demo.
To use this, you can one click and upload your images, either from your PC or images on the web. It is very simple to use, you will love it by their appearance. It installs quickly, requires no database and is configurable. You can determine the size of images, file length, etc.. It allows you to resize images, verify the file integrity and integrate it with url shorteners like TinyURL.
The best about this free image hosting script is that you can edit and adapt the code as you like because it is open source. This will also allow you to help them in developing and making this script more stronger in future.