Thank you for this very nice plugin – I really do like it, but I’ve got the same problem (and the same questions!) for a group of domains hosted in separate folders on a Godaddy shared hosting account.
Domain 1 is hosted in the site root with a WordPress MU install;
this is the domain where the AIOSFP plugin is installed.
Domains 2,3 and 4 are hosted in sub-folders; they have their own separate WordPress install and the images on these sites appear OK!
The *other* domains are static html-sites without WordPress.
Only these sites have their images blocked when the AIOSFP hotlink-option is active.
Please advise if there is a workaround…