I currently have little experience in the opensource area and I'm guessing this is where I need to go if I want to create a WMS Service without needing ArcGIS Server. Basically my goal is to take a local geo-referenced image (geo-jpeg) and create a WMS service to display that image. I've done some searching on this topic and I can't seem to find any specific information on this. I would prefer not needing to create a MapServer installation but if that's one of my best options, I will try going that route. So at this point I was hoping for some direction on how to create a WMS service, hopefully without needing to setup my own server. Maybe a blog post or tutorial on doing this. Thanks...
For a non-programming (but not FOSS) way you could create a free account and try to upload your image to GIScloud. WMS is one of the outputs you can get fron your project there. Check docs for more information.
For more ambitious way - GeoServer might be good way. I find it easier to interact with than MapServer. Check OpenGeo tutorials for a good starting point.
I have a tutorial that describes how I set up GeoServer for this using the Blue Marble dataset. It should take you about an hour assuming you are reasonably happy with installing software on your system.