Originally Posted by Zif 
Okay, I think I understand now. Is this sort of like using keywords as image names instead of something like 'image1' so not only if the image does not show up people will know what it was but search engines will be able to tell what it is?
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No. It is using images as backgrounds instead.
For example, for the name of the site you might do this:
HTML Code:
<h1 class="logo">Site Name</h1>
...instead of using an image of the logo.
Then the CSS for that would be something like this:
Code:
h1.logo {
background: url('path/to/logo.png');
display: block;
height: 40px;
width: 100px;
text-indent: -9999px;
}
Height and width would be the size of the image. Text indent is important because it will take the text from inside the element and put it 9999 pixels to the left of the element, essentially making it invisible to your users, but not search engines.