I usually can get jpegs to be smaller than gifs. You just have to play with the size and quality. For our purposes, you usually don't need high quality.
As for broadband, like was said, usually $45-$50 a month. I dropped my $20 dialup account and $20 second line for $45 cable modem. It took me about 3 seconds to make the decision. Now even my wife can't be without it. She says we can drop everything else we pay a monthly fee for, (including cable tv), but not the broadband.