S3 for image storing

Hi all,

Has anyone got any experience with using Amazon S3 as an uploaded photo store?

I'm writing a website that I need to keep as low budget as possible, and I'm investigating solutions for storing uploaded photos from users - not too many, probably in the low thousands. The site is commercial so I'm straying away from the Flickrs of the world. S3 seems to offer a solution but I'd like to hear from those who have used it before.