Webhosting Solely For Hotlinking

I am a graphic designer/photographer who creates designs for music artists, producers etc. on Myspace (I know, I know). This obviously involves lots of hotlinking, and that is why I am here.

I provide customers with hosting for their layouts so that they don't have to go out and search for one. I am currently hosting the images on a friends private server, but it's fairly slow and I want something more reliable. One layout usually has around 20 different images (background, headers, banners, etc) and I try to make sure it comes out to a little under 1MB, so I don't need to worry that much about disk space. I'd say bandwidth might be the only issue if anything.

I enjoy the work but it's mostly a side business and doesn't create much revenue, so I'm trying to go for around or under $10 a month. That said, I also want to make sure things are fast enough for the visitors and am willing to up the budget if required. I was going to go with 1and1 or Hostgator but heard alot about overselling.