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I have never tried Dreamhost but mostly what I have heard about them is bad. A subdomain would be no different than having the pics in a different directory...as long as it is on the same box it won't make a difference I don't believe. TGPs don't like anything hotlinked...even The HUN. You are on the right track Spock with using a sponsor or freehost with The HUN...reduces your risk greatly (it's only logical ;-).
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