What is a hosted image and how do I create one?

Doing some cross-promotional work with bloggers and I want them to post a button for my website on the sidebar of their blog. One of the bloggers just wrote me back and said that in order to post the button with the link attached to it I need to send her a hosted image. What is a hosted image and how do I create one?

Oh and I dont really understand computer lingo so feel free to dumb it down a little for me.

they want you to create an image for them to use on their website. normally they specify what size in pixels by pixels how big they want it to be.

once you created this image upload it to your websites host (ftp upload) or use a free file sharing website (preferably unlimited bandwidth) like google's picasa to host it. the host is who puts the website on the web for you. they have your site on their servers which the other members get the information from when they view it.

simple:

create an image in the size they want.
upload to your website with ftp if you have a normal site
if you have a blog then upload the image to your blog the normal way or upload to a photo sharing albumn (preferably one like picasa)