I want to start a image host and a file storage site but my host currently mediatemple will not let me store data in their server.Because 75% of content files stored on Provider's server must have associated HTML, or PHP files inside the account.They me told i should looked into amazon s3 to store all my data.Is it cheaper to buy a new hosting account with anther provider that allows me or should i just use amazon s3 ...
Well I would be able to host your site for you. You could use say coppermine to host the images and host as many as you like.
No matter whichever host you choose, just read the TOS carefully. Most shared hosts will not allow you to run file or image hosting since it consumes to much resources. I think Amazon S3 would be a better solution.
Go for AS3 coz they is count per use so it will turn into a large saving for you if compare to dedicated server that you need to pay fixed price every month although you have not fully utilize the resource.