It's about time! Google has finally decided to jack up the free version of Picasa's Web Album storage size from the orginal 250MB to 1GB. Just like Gmail, which says the storage amount 'and counting', Picasa's size will also slowly increase. With 1GB of storage, you'll now be able to store up to 4000 high-quality photos.
Picasa has also become more like Flickr whereby you can search the public photos posted by other people. Just be sure to change your picture folders to public if you wish to do so!