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New Yikes...
Misread.

right about $682/month for your numbers off a Distributed Content Delivery Network

1043770 hits (cheap part)
2000GB/month (expensive part)

You are starting to get into the expensive areas now.
New That's what I figured
And it's an oddly large bump. It seems the shared hosting deals set bandwidth caps that they believe are beyond what most users will ever need. (CPU time is the exact opposite.) To scale up, you need to move to a whole different class of host.
--

Drew
     Are there any entry-level content caching services? - (drook) - (27)
         AMAZON Cloudfront and S3 - (folkert) - (10)
             Are those numbers per month? - (drook) - (9)
                 Yikes... - (folkert) - (1)
                     That's what I figured - (drook)
                 Your images may be a lot larger than that - (scoenye) - (6)
                     Most people don't click through to most of the pictures - (drook) - (5)
                         Server-side compression? - (Steve Lowe) - (4)
                             The HTML is coming from blogger.com - (drook) - (3)
                                 Re: The HTML is coming from blogger.com - (folkert) - (2)
                                     Yeah, I don't know much about compressing photos -NT - (drook) - (1)
                                         Better learn and quickly... - (folkert)
         Who have you looked at? - (static) - (10)
             I found that same list - (drook) - (9)
                 Aye. - (static) - (8)
                     And it's *NOT PORN* - (drook) - (7)
                         Wow... but what about this... - (folkert) - (3)
                             Already had to do two DMCA takedown notices - (drook) - (2)
                                 Well, I started... - (folkert) - (1)
                                     I've seen her - (drook)
                         Obvious question... - (static) - (2)
                             Great point. -NT - (folkert)
                             I've asked them, waiting for a reply -NT - (drook)
         photobucket, maybe? -NT - (malraux) - (2)
             Had Flickr for a while - (drook) - (1)
                 photobucket should allow that - (malraux)
         Hosting Matters? - (Another Scott) - (1)
             It not the bits per second he needs... - (folkert)

I've never used said feature, but the top Google results include words like "issues", "errors", "problem", and "madness".
99 ms