Picasa Error: Whoops Reached 1GB Storage Limit - Here's What you Need to Know

I have recently gotten this particular error when uploading photos to my blogs and realized that I have been uploading some photos that are above the 2048x2048 free upload size, thus having some of the photos count against my 1GB free storage space. So if you want to keep uploading photos for free and not have it count against your quota try to keep it at the free upload size. 

Here is what google has to say about it to make it more official:

Free storage limits

Picasa Web Albums offers 1 GB of free storage for photos and videos. However, files under certain size limits don't count towards this free storage limit. This applies to uploads for other Google product that store photos and videos in Picasa Web Albums, including Blogger, Google+ and Google Maps.
The free storage sizes are good for sharing photos on the web, but if you prefer to upload your images at a larger size for better quality (archival or print), you can buy more storage at any time. Learn more about Google storage.
If you've signed up for Google+

Free storage limits

Photos up to 2048 x 2048 pixels and videos up to 15 minutes won't count towards your free storage.

Automatic resizing

All photos uploaded in Google+ will be automatically resized to 2048 pixels (on their longest edge) and won't count towards your free storage quota.
All photos uploaded from the Picasa software or in Picasa Web Albums over the free size limit will count towards your 1 GB of free storage. When you reach your storage limit, any new photos you upload larger than the free size limit will be automatically resized to 2048 pixels (on their longest edge).

If you haven't signed up for Google+

Note: If you reach your storage limit when uploading from the Picasa desktop software, you'll only be able upload at free storage sizes. Larger uploads will not be automatically resized to the free storage limit.

updated 10/16/2012