Google claims that you can store up to 8,192,000 photos from a 5MP camera in Picasa Web Albums. Unfortunately, this isn’t the case.
Picasa Web Albums has some interesting limitations. you are limited to 1,000 photos in an album and 1,000 albums per account. That means that no matter what quality the image, it’s impossible to save more than 1,000,000 photos in Picasa Web Albums.
Alex Chitu writing in Google Operating System:
Of course, Google might say that the photos can also be stored using Google Docs or Gmail. Picasa Web Albums has to remove the limitations, improve photo uploading and the way you organize photos. Why do you have to upload photos to an album when Gmail and Google Docs use labels to organize messages and files?