I tested sending an SMS, and the text message transmitted through. A few minutes later, Elaine SMS: Delivered was displayed in the instant messate chat box above the message I sent to the persons' mobile phone.
According to this FAQ article,
You can send SMS text messages to any text-enabled number (that is, most mobiles, and some landlines), or to a Skype contact who has one of these numbers saved in their profile. All you need is a little Skype Credit.
By omission of "picture," or "photo," and that SMS service is text messages, I would surmise sending a file would not work. I tried to send a photo, and the image just kept waiting and waiting and waiting -- nothing happened. I finally cancelled the file transfer after several minutes. I'm thinking the system could not figure out what to do with this file, as it had no characters associated with it.
Update: I tested sending a photo again via SMS; the recipient received my "I am sending a photo" SMS alert, and saw no indication that a photo was on its way, such as we would see an incoming file transfer. The recipient saw no indication or notification of an inbound photo, and on my side, as the sender, the file was waiting. After five minutes, I cancelled the send.