1. Note: Using this plugin is at your own responsibility. We do not answer questions concerning your servers performance, security or otherwise.
BUT: it is imposible for Search Engine to penalize someone for protecting their investment, this would be anticompetitive practices, and is illegal !!!
Hotlink adversely affect servers performance, bandwidth, and cost ... your investment and it is your right to take action against thieves !!!
2. BING redirect will work with next update 1.8.7, but only with Chrome and Firefox browsers (Opera will not work) ... Other browsers have not been tested !
you can check with publicphoto.org here: http://www.bing.com/images/search?q=site%3apublicphoto.org&FORM=HDRSC2
Note: Only watermark images are redirected ... because and not all images from publicphoto.org is watermarked!
3. With or without watermrk, Yahoo does not offer option to click on the picture ... at least I have not seen!