Dave Shea provides an excellent round up of the various image replacement techniques currently in use.
When I saw how one in particular worked however, the Lindsay Method, it immediately raised some red flags in my mind about the potential for search engines to see it as some kind of spamming techinque.
Tiny fonts and text the same color as the background are tried and tested methods for trying to trick search engines into ranking your site for certain keyword phrases, and for this reason alone, I would not recommend using this method.
I looked around the web briefly for some articles to back up my concerns, and while there has been a lot of talk on the subject (example discussion 1, example discussion 2) I was not able to find a definitive answer as (naturally) the search engines do not report exactly how their spiders and search algorithms work.
I do have a question about the Phark Method. I couldn’t get it to work for a site logo which needs to be linked to the home page. Is it possible and I am just missing something obvious?
To me it seems that if you’ve indented your text (and hence your link) by 1000 pixels there’s no way in hell it’s going to work, and I couldn’t come up with a workaround.