Best I can tell he is talking about doing galleries and free sites.
I can answer one question about putting pics on html instead of just linking to them. Just about all TGPs do not allow this and many link list also do not allow this. This is mostly to prevent cheating and make it easy to review. Also you want the surfer to have to go back to your gallery each time so that they keep on seeing your ads and hopefully check out your sponsor so that is another reason that there isn't a next and back link.
