Any Recommendations for Photo-Hosting Sites?

Does anyone have any recommendations for a good photo-hosting website? I found out last weekend that Imgur doesn't allow users to create folders anymore, which kind of sucks when you're trying to back up photos from different events, outings, etc. I feel especially bad because I was using Imgur to back up my dad's photos and told him what a great option it was. Thankfully, my brother was around to explain to Danna why Imgur wouldn't work anymore. "It's shit now," he said.

I'm hoping to find a photo-hosting website that is a) free and b) allows users to create folders. A decent amount of space wouldn't hurt either, though that's not necessarily a deal breaker. I may or may not add the pictures that are on Imgur to the new site. I certainly won't be removing my pictures from Imgur altogether because I have too many of them linked to Dreamwidth and LJ entries. My sanity won't survive if I have to replace all of those links again. It was bad enough the first time. *g*