I have a problem with Blogger !!!

This afternoon, I was trying to write a post about my latest craft....
I clicked on "Insert image", then on "Select a file" and I chose a pic and I waited to upload it...
Instead, this message appeared in the box

"Whoops! You're out of space. You are currently using 100% of your 1 GB quota for photos. Upgrade storage

Photos are stored in your Picasa Web Albums account and are included in your 1 GB free quota for photos. Additional storage that you purchase is shared between several Google products and is in addition to your free quota. Learn more"

This is the first time that something like this happens to me....

Did you ever had a message like this one? How did you solve it?

I have an account for my photos on Flickr (a 2 years Pro Account that I'm paying for), so I don't think, honestly, that I need a new photo account!

So if Blogger promotes itself with "Create your free blog", how can you explain all this?

I have many thoughts on my mind, but still no solution! Can you help me?

xxxx, Alessandra