'hotlinking' is when you have a URL (uniform resource locator) that you 'link' to via the [img] tag (in vB code).
so, to 'hotlink' a picture, is simply referring to this
[*img]http://www.somehost.com/files/blahblah001.jpg[*/img]
(without! the asterisks)
it's simply a link pointing to an image file (jpg, gif, png, bmp) within the [img] code, which the board 'interprets' as an image link.
hope that makes sense?

__________________
- + - ° GiRLie GeeK ° - + - °
01110010011011110110111101110100001000000110110101100101
Therell be days/When Ill stray/I may appear to be/Constantly out of reach/I give in to sin/Because I like to practise what I preach