I was not aware that each time you post a picture, it is stored in Picasa, which is a Google program. So each picture on your blog is linked through Picasa. Blogger, or Picasa, gives you a certain amount of space to post pictures. If you run out of space, they charge you for more, and no, it is not a scam. This is their official rule:
Free storage limits
Picasa Web Albums offers 1 GB of free storage for photos and videos. However, files under certain size limits don't count towards this free storage limit. This applies to uploads for other Google product that store photos and videos in Picasa Web Albums, including Blogger, Google+ and Google Maps.
The free storage sizes are good for sharing photos on the web, but if you prefer to upload your images at a larger size for better quality (archival or print), you can buy more storage at any time. Learn more about Google storage.
Free storage limits
Photos up to 800 x 800 pixels and videos up to 15 minutes won't count towards your free storage.
Automatic resizingAll photos uploaded over the free size limit will count towards your 1 GB of free storage. When you reach your storage limit, any new photos you upload to Picasa Web larger than the free size limit will be automatically resized to 800 pixels (on their longest edge).
Note: If you reach your storage limit when uploading from the Picasa desktop software, you'll only be able upload at free storage sizes. Larger uploads will not be automatically resized to the free storage limit.
So, what you need to do before posting a picture, is to make sure that your pixel size on your photo is not over 800 x 800 on their longest edge. I use Photoscape, and it will allow me to change my picture size, so hopefully I won't have this problem again.
I took Vee's advise, and went to my Picasa Web album and deleted pictures (headers, etc.) from the web album to give myself some wiggle room. This is easy to do. Just type in Picasa Web Album, and you will be there. If you do this, keep in mind that any picture you delete from your web album, will also be deleted from your blog. I'm pretty sure that I may have deleted some of the pictures from my blog... ;0) It will take a lot of time to go back through each post and fix it, but I am willing to do it, because I would like to make a book of my blog someday. Right now, I am using 98.21% of my storage, so I need to be very careful!
NOTE: THERE ARE NO PICTURES IN THIS POST!
Thanks again, what wonderful friends I have!