I have added to favourites and sent requests to all those who have replied on this thread with a link to their spaces so far, just because they're on NOOL.
I use http://myspace.com/aneworderfan (in the few spare time I have) mainly to interact with bands (and their fans) who have pages on MySpace, starting with Gabrielles Wish of course.
MySpace is an amazingly useful place for musicians, it cuts the distance between them and their audience, it helps to create communities around emerging bands, and to discover bands linked by them or by people who follow them.
I like to see there's still good bands down there in the underground. I've been impressed by Azure Glow, for example. They don't do exactly the music I usually hear, but they're very powerful, good at doing emotional songs...
I like to link to the profiles of those bands to help them getting known. BUT (while I usually accept "friendship" requests unless the bands suck) I link on my page only to the bands I HONESTLY like, so wether you can disagree with my taste, you'll know I link to them because I really like them and I think you should hear them.
The MySpace blog sucks but has the best support for streaming media files, so I use it to stream audio and video, taking codes from sites that claim to be legal, I'm a bit suspicious about them, but I keep an eye closed for the sake of promoting good audio and video of bands I'd like people to hear.
If you want a real blog, LiveJournal sucks, WordPress is probably the most full featured but it's quite slow, overall the best is BloggerBeta, if you hack the template a bit (I link to blogs which can help you with that), it can become almost an online content manager like WordPress.
As for posting images, Photobucket.com is probably the best.