Photobucket has a free application for the iPhone and iPod touch!
Upload existing media from your local camera roll on your device or new shots (and videos on 3Gs) directly to your Photobucket albums. Check out the Find Stuff categories or search Photobucket's billions of photos. Easily download images to your device for use as wallpapers, contact IDs, and more. Share with others via email or grab image URL links to post on your blog or favorite social network. Manage your Photobucket albums and show off your collection in full screen.
Important! Additional charges may apply for sending data when you are roaming. Contact your carrier for information about your data plan, if you will be charged extra per MB of data sent when you are out of the country or your phone is roaming, etc.
On your iPhone:
Go to the App Store.
Press the Search icon, and search for "Photobucket".
Select Photobucket from the search results. **Note this is different from the Snapbucket app**
Press Free, then press Install to download the Photobucket app to your phone.
You can also download the Photobucket.com application on iTunes, then sync with your phone.