I have ONE pic folder on each of my domains and use an htaccess in that folder similar to what greenguy posted. That way ANYTHING in that folder and subsequent folders is protected and it also allows me to permit hotlinking in any folder except that one, should the need arise. It's also to help with less cluttering of freesites, galleries, etc. One pic folder repository keeps things easy for me and the htaccess code is simple and small.
However, I also have one in the root of each domain for those sitesuckers and such, including fusker.
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