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PR_tom, I will answer your last question first, because it is the easiest. It doesn't matter where the image ACTUALLY is, it is where it APPEARS to be. If you hotlink an image onto your site, well, it's part of your site (you published it as part of your website) - so hotlinking, zero frames, whatever... you control the domain, so you control what is on it.
Redirects are better than zero frames.
As for supermarkets, well... I will assure you that they know which employees can legally work for them and which can't. No green card, no SSN, well... no job.
The government doesn't have to come check for them to still keep accurate records.
Alex
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