PROPBLEM UPLOADING PICS

hello,

I just started a new blog and this is my first post. I am very new to this and whenever I try to upload a picture I get this:

Fatal error: Out of memory … lala in the public_html folder

Is there a way to get around this? And do you think its better to put my pictures in my posts using html like uploading them to Photobucket and putting in the html to avoid wasting the memory on my site?

Thanks in advance. ??