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With Skitch completely screwing their latest release, hosting issue related files (screenshots, doodles...) was painful to say the least. Dropbox did an ok job at it but did not let me embed pictures in the thread (the file URLs change randomly).

Pretty awesome that the guys at Github got that covered.

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Obviously a non-issue now, but what about something like http://imgur.com/?

+1 for Imgur.

Hosted all of my images for our GitHub Game Off entry[1] README file there. Always a solid solution if you want any sort of image hosting.

[1]: https://github.com/TARGS/game-off-2012

Do note that imgur will delete images if they haven't been viewed in 6 months.

http://imgur.com/faq#long

Did not know that, thanks for the heads up.

Can you keep pictures private on imgur?

Yes you can. It works well as long as it's up but they have a tendency to go down randomly.

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