I have just developed a free image hosting site called PICDRIVE.com (bought domain from someone here) which is far superior than many others out there but I have no idea how i should go about promoting it.
Any traffic gurus out there who can give some advice? You are welcomed to try the site at well. Picdrive.com
their are many ways if you gonna spend $$$
if you want to use by users then you need to pay something like others sites are doing and their are methods to promote your site
use it on forums when posting an image.
put it on forum sigs.
social bookmark it.
put it on social networking sites about me space.
myspace uses a lot of images,use it regularly there and also on stumbleupon.com (on the about me profiles)
Do all the above mentioned and in order to really get it going you have to be willing to spend some abucks. For example, possibly set aside 200 $ for adverts, many good deals can be found on this forum.