Just wondering how does Flickr prevent people from downloading images from its site? What are they using?
Transparent .gif over the image. You can still download the actual image by viewing the HTML source and finding the image's actual URL.
For example, a random image: http://www.flickr.com/photos/34285128@N00/4300352607/
That's the transparent image on top.
That's the actual image, which is displayed below spaceball.gif.