The picture albums are hosted here, and any image attachments in posts are hosted here. It's the linked images that can be hosted anywhere on the internet. I can block the <img> tags so no external images work, but that's a little drastic, and people really do get good use out of being able to quickly post <img> tags and have them work as expected. The 3 ways people can get pictures onto this site are listed in a sticky thread at the top of the pictures section.
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