Google Image Search Help

I need some help or advice.
My website receives most traffic from Google organic searches and was also generating some pretty good traffic via Google Image Search (top spot in many searches). My images at that time were hosted on Google Pages. Then about 3-4 weeks ago, my pictures on my site stopped displaying. I believe this issue was caused because you are only given a limited amount of bandwidth with Google Page Creator (I guess I found this out the hard way). I spent the time moving all my pictures to Google Picassa and my pictures now display fine, however, I'm now getting ZERO traffic Google Image Search.

My questions:
1) Will Google ever recognize my images from Picassa? Do Picassa images get indexed? My pictures are in public galleries.
2) Does Picassa have bandwidth restraints similar to Google Page Creator?
3) For future reference, what could I have done differently to maintain my Google Image Search rank?

Thanks for your help. This is my very first post and I look forward to learning from everyone here.

How about hosting the images on your own server? Or am I missing something?

I don't have a server.

Then where is your website hosted? Wherever it is, you should be allowed to store images.

Pacific Monk,
My website is hosted on Google Blogger. When I initially started, with Google Blogger, I didn't want to use their image upload template on Blogger because I was limited to adding my own Alt Tags to images, etc. So I used a different host for my images (Google Pages). I think recently, however, that Google Blogger pictures now automatically get transfered to Picasa. And as I mentioned, I had to transfer my pictures because my Google Pages pictures ran out of bandwidth. As you can see, I'm using Google entirely. That might not be wise, but it is 100% free and I'm getting pretty good Google organic search results. My website is in my profile if you are interested in viewing.

Well, your site does look pretty cool, I'll give you that. But at the end of the day, nothing can beat professional hosting. It looks like you have some potential in your niche; all you need is more on-site content, backlinks, and better monetization.

If you're already making money from blog, you should reinvest that into hosting; if you aren't, you should still consider switching over to a professional hosting company. You can get good shared hosting for like a hundred bucks a year.

Thanks for the kind words. Yes, I am currently making money on my site (not much, but enough to receive monthly checks). I'm fairly optimistic about the potential because you are correct, I have very few backlinks and I am still generating decent traffic (~7000 uniques per month). And I started this site only 8 months ago.

This might be a stupid question, but what would the advantage of professional hosting be compared to what I am doing and just using 100% Google free services? Thanks!

Here you go: http://www.google.com/search?q=free...vs+paid+hosting