Picasa Overload

It has been brought to my attention that I have too many high quality pictures on my blogs.  It all started when Rebecca wanted to change the header on her blog.  It wouldn't let me due to the fact that I was out of space on Picasa.  What?!?!  How could that be?
I had just put up a post of old pictures I found while deleting pictures on my pc--I am running out of memory on that too :o/  Time for a new computer, hmm? (wink) 
I love putting pictures on here!  Now, come the consequences...  (BTW, I deteted that post of old pictures, too, to try to make more room for others.)
In trying to figure out how to reduce my 99.4% filled to capacity Picasa Web album; which holds all of blogger's pictures; I found out that on this blog alone, His Precious Gems, I have a total of 2,686 pictures on here.  Wow, that is a lot of pictures over the years.  That does not include Rebecca, Emily, or my homeschooling blogs. 
I deleted a few pictures, but obviously not too many as it will delete them off my blog.  I realized that the problem is that my pictures are too big in size.  To reduce the size to put them on here is a great inconvenience. 
I painstakingly took the time to resize all the pictures from the post on the girls Awana Awards.  It makes the pictures look grainy and distorted.  However, I am down to 97.14 % full.  A tiny bit better than 99%, I'd say.
I do not want to start another blog under another username to get more space...  I refuse to pay for the memory on Picasa...  I think that once I get to capacity again, I will have no other choice but to start another blog.  Be on the lookout for when that happens.