BTW just to let ya know...Google is your friend
but ill be nice and post what i found on google myself.
According to this
Site hotlinking is:
QUOTE
Bandwidth theft or "hotlinking" is direct linking to a web site's files (images, video, etc.). An example would be using an <img> tag to display a JPEG image you found on someone else's web page so it will appear on your own site, eBay auction listing, weblog, forum message post, etc.
so there you have it.
oh and yes dont hotlink as there was this one incident where this guy screwed a lot of people over for hotlinking to one of his images XD this incident i am calling the "Goatse pwn" XD