Actually I think hotlinking is when you use the 'img src' code to have the picture automatically pop up on your entry--like with the icon meme, but since the original image isn't part of your property (like your LJ icons are part of our service with LJ), it uses up the servers for the people who posted the image originally. Um. I think. So it's weird that just listing a link ended with the picture blocked.

Anyway, that other version of the picture is definitely more clear.