Picasa Web Albums now store unlimited small images and videos
Turns out it's a change in Picasa Web policy, and a darn nice one at that: images under 800 pixels and video clips under 15 minutes no longer count against your storage limit.
That's certainly great news for anyone who uses Picasa Web to store images for blogging -- 800px is plenty wide for most layouts. It also makes Picasa Web a great place to upload and share all the lower-resolution photos you snap on your Android phone.
As for the 15 minute videos (which arguably take up more more drive space than an 800px photo)? Google has a voracious appetite for video, and might just be hoping that Picasa Web users will help it maintain its dominant position in terms of serving videos on the Web.