After exhausting tons of different solutions I have decided to switch out the sites main IP address all together.
If that doesn't work I don't know what will.
As a result PictureHoster will be down for everyone until the new DNS propagates.
It could take up to 48 hours for full worldwide propagation so don't panic. It will also come up quicker for different people due to ISP's individual DNS Cache flushing. I am sorry for the inconvenience but clearly something is screwy with the current DNS config (it is a DNS issue) and this will free the site up from the main shared IP.
Let's hope this works.