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Have a photobucket icon appearing in the middle of my blog that says a picture has been deleted.are common in BHF: Something Is Broken.
As I've written before, many third party template providers may become victims of their own success.
Some times, the template providers intentionally remove wallpapers which they host using PhotoBucket or other fourth party content hosting. Either way, your blog is suddenly left looking very plain, with no wallpaper.
Some bloggers have reported success, by refreshing the code, from the "Cutest Blog" website. Others have simply removed the template - sometimes by removing an HTML gadget, which was installed as part of the "Cutest Blog" install process.
That is, unfortunately, a risk that you take. Try a designer template instead, if you want to avoid the third party template blues.
(Update 8/13): From reading a comment received today, it appears that the "Cutest Blog" updates were planned, and warned. Updated code, referencing their new content host, should be available on their website.