I use Adobe Photoshop Elements at home. My puter hates it, but it does have some bells and whistles that I use once in a while. At work, I use the MS Photo Editor that comes with Office. I actually like it better most of the time, since almost all I ever do is crop and resize for the net, and it lets you see how many pixels wide your cropped photo is before you crop it.
I store my images on an external hard drive.
No idea on the book.
I like my photobucket page(s). They let you put up a link to the image, to the page the image is on, or a thumbnail link like the one below: